BOE relieved as UK jobless rate drops
Source: Agencies |
January 24, 2013, Thursday
|
Print Edition
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BRITAIN'S unemployment rate has fallen to 7.7 percent, official statistics showed yesterday, easing pressure on the Bank of England to inject more money into the economy.
The jobless rate for the September-November period fell from 7.8 percent in the previous three months, the Office for National Statistics said.
Chris Williamson, chief economist at financial data company Markit, noted that vacancies were at a four-year high which suggested that the "perplexing situation of rising employment in a stagnant economy may continue into the new year."
Meanwhile, minutes of the BOE's Monetary Policy Committee's January meeting showed there was again an 8-1 vote to hold the bond purchase, or quantitative easing, program at 375 billion pounds (US$595 billion). David Miles again was the only advocate for the program, intended to lower the cost of borrowing and spur lending.
The minutes also suggested, however, that there had been a lively discussion on the issue.
Modestly positive developments had strengthened the belief of some members that no further stimulus was needed, while others thought more could be done without causing much additional inflationary pressure.
"Be in no doubt that we are ready to provide more stimulus if it is needed," BOE Governor Mervyn King said in a speech on Tuesday.
However, he said prolonged reliance on stimulus had unwanted side effects.
The jobless rate for the September-November period fell from 7.8 percent in the previous three months, the Office for National Statistics said.
Chris Williamson, chief economist at financial data company Markit, noted that vacancies were at a four-year high which suggested that the "perplexing situation of rising employment in a stagnant economy may continue into the new year."
Meanwhile, minutes of the BOE's Monetary Policy Committee's January meeting showed there was again an 8-1 vote to hold the bond purchase, or quantitative easing, program at 375 billion pounds (US$595 billion). David Miles again was the only advocate for the program, intended to lower the cost of borrowing and spur lending.
The minutes also suggested, however, that there had been a lively discussion on the issue.
Modestly positive developments had strengthened the belief of some members that no further stimulus was needed, while others thought more could be done without causing much additional inflationary pressure.
"Be in no doubt that we are ready to provide more stimulus if it is needed," BOE Governor Mervyn King said in a speech on Tuesday.
However, he said prolonged reliance on stimulus had unwanted side effects.
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