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No rush on rates despite UK jobless fall

Wednesday, November 13, 2013 - 01:28

Nov. 13 - Britain’s unemployment rate has fallen to 7.6 percent - its lowest level in more than three years. Growth for the year has also been revised up from 1.4% to 1.6%. But as Hayley Platt reports the positive data could create a problem for Bank of England boss Mark Carney.

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Another boost for Britain's economy. Unemployment has fallen to 7.6 percent - it's lowest level in more than three years. The country's strengthening economic recovery is partly the reason, says Bank of England boss Mark Carney. SOUNDBITE: Mark Carney, governor, Bank of England, saying (English): "For the first time in a long time you don't have to be an optimist to see the glass is half full. The recovery has finally taken hold." The Bank of England expects unemployment to fall even further - it predicts a 7 percent rate by the end of 2014. That's two years earlier than previously expected. Inflation too could fall below 2% six months earlier than previously forecast. Sterling jumped as a result and government bond prices fell to their lowest level in four weeks. But Carney insists he won't increase interest rates. Robert Cole from Reuters Breakingviews believes him, but has reservations SOUNDBITE: Robert Cole, Reuters Breakingviews, saying (English): "Everything at the moment seems to be very rosy but I have to say that there is a certain unreality about it for me. The obvious one is the housing market isn't it and that the growth that we're seeing coming through in GDP figures and so on is really down to a sort of re-inflation of the property bubble." Carney's had a dream start to his job But not everyone thinks his luck will last. Markets are betting he won't be able to stick to his "forward guidance". A rise in interest rates before the middle of 2016 is already being priced in by many investors.

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No rush on rates despite UK jobless fall

Wednesday, November 13, 2013 - 01:28