GBP: Mixed messages from UK labour market – Lloyds Bank

FXStreet (Delhi) – Research Team at Lloyds Bank, notes that the minutes from this month’s MPC policy meeting suggest that, despite another drop in unemployment, the recent run of very weak inflation prints may have contributed to a dip in pay growth, to 2.4%, in the three months to October.

Key Quotes

“Taken together, these wage and unemployment developments have mixed implications for both domestic cost pressures and household spending. With Wednesday’s labour market data expected to show a similar picture - we expect wage growth and unemployment to fall to 2.0% and 5.1%, respectively.”