U.K. Unemployment Drops For Consecutive Month, BoE Shows Concerns Over Inflation

U.K. unemployment fell more than forecasted in March as the number of jobless claims dropped by 32,900 against 10,000. Unemployment filings fell for a consecutive month which lowered the unemployment rate to 4.8%.

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GBP/USD –  U.K. unemployment fell more than forecasted in March as the number of jobless claims dropped by 32,900 against 10,000. Unemployment filings fell for a consecutive month which lowered the unemployment rate to 4.8%. Strong demand from abroad continues to fuel growth and a pick-up in consumer spending has slowed layoffs and is sowing the seeds for hiring. Meanwhile, the release of the BoE minutes revealed that the MPC was unanimous in their vote to pause the asset purchase program. However, there were conflicting opinions on the balance of inflation and growth risks, which appears warranted following consumer prices accelerating to 3.5% in March. The next policy meeting could see dissention and stronger calls for an end to the quantitative easing.

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