Firmer U.K. Jobs Data Solidifies BOE Rate Hike Next Month
Dow Jones10-20 19:52
1152 GMT - Strong jobs and firmer pay data in the U.K. will probably make Bank of England Gov. Andrew Bailey's choice a little easier when deciding whether to raise interest rates at November's meeting, HSBC's Elizabeth Martins says. At the IMF meeting in Bangkok last week, he appeared not to have made up his mind, and the subdued labor market has been a key reason for policymakers' reticence thus far, she says in a note. "Even if [Wedenesday's] inflation data are soft, the pickup in pay growth and evidence of a more resilient economy point to increased risks of the energy shock leading to second-round effects," Martins says. HSBC forecasts a 25 basis-point hike to 4.0% on Nov. 5.
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