13 Nov 2013
Sterling surges on BoE report and robust jobs numbers
FXstreet.com (London) - Sterling has surged this morning on strong jobs numbers as well as a forward revision of interest rate forecasts. GBP/USD has climbed 0.48 percent to USD1.5980, undoing yesterday’s losses.
In its Inflation Report, the Bank of England has forward-revised its forecasts for the date at which the UK unemployment rate will drop below the 7 percent threshold. As part of the BoE forward-guidance programme, BoE governor Mark Carney has stated that the MPC will consider raising base rates from their current record-low 0.5 percent level.
In the first inflation report since Carney introduced forward guidance in August, policy makers also cut the near-term prediction for inflation. The MPC now sees consumer price index inflation dropping below its 2 percent target by the first quarter of 2015.
The report from the BoE quickly followed UK labour market data from the Office for National Statistics, which showed that joblessness fell to 7.6 percent in the three months through September.
Expectations of declining inflation will provide some respite for households that have seen a long-running decline in real wages. This morning’s jobs report from the ONS showed wage rises had slowed to 0.7 percent in the third quarter from 0.8 percent.
In its Inflation Report, the Bank of England has forward-revised its forecasts for the date at which the UK unemployment rate will drop below the 7 percent threshold. As part of the BoE forward-guidance programme, BoE governor Mark Carney has stated that the MPC will consider raising base rates from their current record-low 0.5 percent level.
In the first inflation report since Carney introduced forward guidance in August, policy makers also cut the near-term prediction for inflation. The MPC now sees consumer price index inflation dropping below its 2 percent target by the first quarter of 2015.
The report from the BoE quickly followed UK labour market data from the Office for National Statistics, which showed that joblessness fell to 7.6 percent in the three months through September.
Expectations of declining inflation will provide some respite for households that have seen a long-running decline in real wages. This morning’s jobs report from the ONS showed wage rises had slowed to 0.7 percent in the third quarter from 0.8 percent.