PREVIOUS TRADING DAY EVENTS 02 Nov 2023

The Bank of England BOE kept its main interest rate unchanged yesterday at 5.25 and indicated that borrowing costs will remain stable. Inflation though, remains high and the target level is 2.

Policymakers expect that the elevated rates will eventually cause inflation to drop. However, future action will depend on the data and the possibility of further interest rate increases is not to be excluded.

Weve held rates unchanged this month, but well be watching closely to see if further rate increases are needed, Bank of England Gov. Andrew Bailey said. But even if they are not, it is much too early to be thinking about rate cuts.

Source httpswww.reuters.comworldukviewbankenglandkeepsrates15yearhigh20231102

The Jobless Claims in the U.S., a proxy for the number of people receiving unemployment benefits, increased to 1.82M in the week ended Oct. 21, the highest level since April. Initial claims also rose, to 217K in the week ending Oct. 28.

The unemployment rate remains low. However, the pace of hiring is losing steam.

Overall, levels remain low, and businesses have yet to start shedding workers at a rapid pace given economic activity and demand remain strong, said Rubeela Farooqi, chief US economist at High Frequency Economics. However, the continuing claims numbers bear watching for signs of a softening in labor demand.

A more complete picture of the direction the labour market is headed will be reported today with the…