UK: Unemployment rate likely to fall a multi-decade low of 3.7% - TDS

Analysts at TD Securities point out that the monthly UK labour report is released for the three months up to April and will be a key economic event for today’s session.

Key Quotes

“We look for yet another improvement in the unemployment rate to a multi-decade low of 3.7% (though risks skew slightly toward an unchanged 3.8%). The market looks for 3.8%. On the wages front, we look for a decline in headline wages to 2.9% 3m/y (mkt: 3.0%), while ex-bonus wages slips to 3.2% 3m/y (mkt: 3.2%) and core private sector ex-bonus wages slip to 3.3% 3m/y, still in strong enough territory for the BoE to be worried about labour cost pressures.”

“The BoE's Tenreyro delivers a speech on optimal policy and the Phillips Curve at 10am BST, and MPC members Broadbent and Saunders appear before the Treasury Select Committee at the same time for their re-appointment hearings.”