PREVIOUS TRADING DAY EVENTS 13 June 2023
Announcements
The 3month U.K. Unemployment Rate was reported lower yesterday, to 3.8 while the Jobless Claims figure was reported negative, 13.6K. The number of people in employment increased significantly in the latest quarter with increases in both the number of employees and selfemployed workers. Wage growth in Britain soared as per the data.
The figures signal even more that the economy is not cooling. The market reacted with GBP appreciation since the data had raised expectations that the Bank of England will raise interest rates again and perhaps several times to bring inflation down. The labour market remains hot and hard to predict.
BoE Governor Andrew Bailey said the data showed the labour market was very tight.
For the Bank of England, wage growth is a big problem it is simply at too high a level to allow inflation to hit the 2 target, said Hussain Mehdi, macro and investment strategist at HSBC Asset Management.
With the possibility of higherforlonger rates, a UK recession looks unavoidable as tight monetary policy filters into the real economy including the housing market, Medhi said.
As Im afraid this mornings numbers illustrated, weve got a very tight labour market in this country, BoE Governor Andrew Bailey told lawmakers on the House of Lords Economics Affairs committee.
Source httpswww.reuters.comworldukukannualwagegrowth72excludingbonusesthreemonthsaprilons20230613
U.S. CPI data were released…