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Back Fundamental analysis
Likelihood of BoE rate cut jumps sharply
The pound plunged, and the likelihood
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The pound plunged, and the likelihood of a Bank of England rate cut rose sharply after the unemployment rate in the United Kingdom approached a five-year high and wage growth slowed. The unemployment rate rose to 5.2%, and pay growth decelerated. This is a combination that materially undermined investor confidence in the British economy and triggered a sell-off in sterling. Economists had initially expected a lower unemployment reading, which had supported the view that the BoE would maintain a restrictive stance.
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Jakub Novak,
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