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The number of employed in Great Britain rallies steeply
In early 2018, UK employers have managed to hire far more staff members than expected, but wage surge hasn’t speeded up, according to data published Tuesday. It leaves the Bank of England in anticipation of signs that the British economy is ready for another interest rate hike.
Employment tacked on by 197,000 for the first three months of this year. That’s the biggest ascend since the end of 2015, far exceeding experts’ forecast of 130,000.
The British pound and UK government bonds were slightly affected by figures that reflected the already familiar notion of a steady surge in jobs, unemployment at the lowest level in recent decades as well as a mild wage surge for most British employees who suffered from higher inflation after the vote on Breckzit in 2016.
The annual wage surge, with the exception of bonuses, speeded up to 2.9% for the three months to March having soared by 2.8% in February, as the National Statistics Agency informed on Tuesday. It turned out to be in line with economists’ expectations.
Although it was the biggest leap for the three months to August 2015, it represents only a 0.4% soar in wages under inflation-adjusted conditions.
Considering the bonuses, the overall wage surge dived to 2.6% from 2.8% for the three months to February.
The previous week, the Bank of England left interest rates intact notwithstanding that in February, representatives of the Central Bank told that borrowing costs were likely to tack on faster than before. Additionally, the head of the Bank of England Mark Carney told that he wants to be sure that the British economy recovered after it barely soared for the first quarter.
Market experts noted that the strength of hiring demonstrates that the British economy didn’t have such a bad start this year, as illustrated in preliminary official data.
USD’s rally takes a pause, while riskier assets are modestly rising.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.