Bank sees 'no immediate need' for rate rise despite unemployment fall

Anna Fedorova
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The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.

The unemployment rate fell by more than expected this morning, from 7.4% to 7.1% in the three months to November, prompting a rise in gilt yields. Data from Tradeweb shows the yield on 10-year gilts rose by 2.84% to 2.9% following the release of the data at 9:30am. The Bank of England has previously said it will consider increasing interest rates when the unemployment rate falls to 7%, a move which would be negative for bondholders. The faster-than-expected fall in the unemployment rate has prompted market participants to anticipate a rise in interest rates earlier than previously ...

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