LONDON, Feb 5 Reuters Britain39;s unemployment rate was much lower late last year than previously thought, the Office for National Statistics said on Monday, citing reweighted survey results that might add to the Bank of England39;s caution about cutting interest rates quickly.

The new data which reflect the latest estimates of Britain39;s population showed an unemployment rate of 3.9 in the three months to November, compared with 4.2 provided by the ONS last month on a temporary, experimental basis.

The BoE is watching Britain39;s labour market closely as it considers whether inflation pressures in the economy have cooled enough for it to cut its benchmark interest rate from its highest level in nearly 16 years at 5.25.

The ONS said Britain39;s inactivity rate measuring people out of work and not looking for it was estimated at 21.9 over the same period, up from 20.8.

The reweighted employment rate was estimated at 75.0 in the new data, versus 75.8 in the experimental series.

Samuel Tombs, an economist with consultancy Pantheon Macroeconomics, said Monday39;s data would put pressure on BoE officials to wait before cutting interest rates, with the unemployment rate firmly on track to undershoot its forecasts.

We still think that the BoE likely will reduce Bank Rate to 4.50 by the end of this year, from 5.25, with the first step down coming in May though the risks that the initial cut comes later are rising, Tombs said.

Last week the BoE opened up the…