Previous Trading Days Events 14 Nov 2023

U.K. Jobless claims report showed an increase, more than expected. In a mixed report, regular wage growth slowed and vacancies continued a long decline, muddying the picture for policymakers. Total wage growth in the third quarter dropped to 7.9 from an upwardly revised 8.2. That was well above the 7.3 that economists had expected.

With the market still fundamentally tight at its core, the Bank of England is unlikely to change its course on keeping interest rates high in the near term, said Yael Selfin, chief economist at KPMG UK.

The number of employees on payrolls rose by 33K in October, defying forecasts for a drop. Septembers reading also was revised to show an increase instead of a decline. The claimant count rate of people receiving benefits held at 4 in October.

The latest batch of jobs data shows why the Bank of England will continue to double down on its higher for longer approach to policy. The labour market and pay growth have cooled, but not by enough to leave the central bank confident it can get inflation back to 2 quickly enough. Said Ana Andrade and Dan Hanson, Bloomberg Economics.

The BOE will likely be disappointed at the slow pace at which wage growth is moderating, said Stuart Cole, chief macroeconomist at Equiti Capital in London. Todays report adds weight to the arguments being made by the BOE that interest rates will need to be kept on hold at their current elevated level for an extended period of time…