UK Claimant Count Posts Rise, No Stimulus Provided
The data of the UK Office for National Statistics on the national labour market suggests that the UK economy takes its time to revive.
The UK unemployment is flat at 4.9% for the 3rd consecutive month. Over the last 16 years it only dipped 0.1% from its high of 5%. But the number of Brits receiving unemployment benefits swelled by 8,100, perfectly matching forecasts.
The International Labour Organization paints a less alarming picture of the UK labour market. According to its statistics, the UK unemployment rate went down 8.2% in March and April, and still it remains at the highest levels since 1996.
Despite the recession-hit economy and zero growth, the Bank of England did not approve any additional monetary stimulus. This is what all market participants are longing for.
At its recent meeting, the Bank of England kept the key interest rate at the previous level 0.5%.
The Bank of England governors scrupled to launch another round of quantitative easing due to political uncertainties in France and Greece. The minutes of the June MPC meeting published yesterday show that the policymakers split 5-4 against more stimulus. Such a negligent divergence in votes provides ground to suppose that the bank would restart its programme of quantitative easing very soon — at its next meeting.