BOE Could Keep Rates Unchanged in Coming Year Due to Weak Jobs Market
Dow Jones
2 hours ago
1011 GMT - The Bank of England could keep interest rates unchanged at 3.75% over the coming year due to weakness in the U.K. jobs market, Jefferies' Modupe Adegbembo says in a note. Tuesday's jobs data showed that payrolled employees dropped by 26,000 between July and August, indicating reduced labor demand, Adegbembo says. Markets' pricing of aggressive BOE rate hikes "remains difficult to reconcile with subdued wage growth and soft employment indicators", she says. Investors fully price in four BOE rate rises by mid-2027, and a potential fifth rate increase by November, LSEG data show.
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