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17 Apr 2014
Early rate hike by BoE? - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, sees the likeliness of an earlier-than-expected rate hike by the BoE after the recent improvement in the UK labour market.
Key Quotes
"The pound is trading on a stronger footing following the release of another robust UK employment report yesterday. The report revealed that employed surged by 239k in the three months to the end of February undermining the BoE’s recent view that there were tentative signs that employment growth was slowing as productivity growth picks up."
"The unemployment rate also renewed its sharp decline falling by 0.3 point to 6.9%, with the more volatile monthly series falling even further to 6.6% in February. The report suggests that the labour market continues to tighten more quickly than the BoE expects increasing the likelihood of an earlier rate hike."
Key Quotes
"The pound is trading on a stronger footing following the release of another robust UK employment report yesterday. The report revealed that employed surged by 239k in the three months to the end of February undermining the BoE’s recent view that there were tentative signs that employment growth was slowing as productivity growth picks up."
"The unemployment rate also renewed its sharp decline falling by 0.3 point to 6.9%, with the more volatile monthly series falling even further to 6.6% in February. The report suggests that the labour market continues to tighten more quickly than the BoE expects increasing the likelihood of an earlier rate hike."