020 7898 0500Economic conditions in the UK continue to become more unsure as the latest employment figures were released.
The data itself was mixed. Starting with the positive, unemployment fell by 0.2% to 4.5%, its lowest level since 1975. However, the big focus was on the average earning growth figure, which fell to 1.8% from 2.1%. Next week’s inflation data will show whether the gap between inflation and salary growth has continued to increase.
The employment and inflation figures will be eagerly watched by the members of the Bank of England’s Monetary Policy Committee. The data will help them make that very difficult call on interest rates. Will they raise rates to try and control inflation, thus squeezing the consumer further, or leave rates on hold and risk seeing inflation continue to creep higher?
Today the BoE’s credit condition survey will be out, which includes data on secured and unsecured lending to households, small businesses, non-financial corporations and non-bank financial firms.
