As the UK furlough scheme ended at the end of September, it heralded a sharp jump in employment in October with 160,000 additional jobs being created along with a boost in average weekly earnings.
Both were larger than expected by the market. The argument made by the Bank of England at its previous meeting for not raising rates was that monetary policy officials wanted to see firm evidence of a buoyant jobs market. This latest employment data release provides just that, and bank rates must surely rise next month now in the UK to 0.25% - hardly a monumental quantum shift but a clear change in direction. The pound is enjoying a modest bounce on the back of this.
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