UK Feb-Apr Unemployment Edges Higher to 3.8%

The transcript discusses the current economic situation in the UK, focusing on the labor market's tightness and its implications for the Bank of England. It highlights concerns about high inflation potentially leading to a wage-price spiral, with unemployment slightly higher than expected and job vacancies at a record high. The cost of living crisis is also addressed, with household spending power falling significantly. The Bank of England is expected to respond with a 25 basis point interest rate hike, potentially rising to 2% by November, to manage demand and ease labor market pressures.

What is the main concern for the Bank of England regarding the current economic data?

• A potential wage-price spiral due to high inflation and a tight labor market.

• A decrease in job vacancies leading to higher unemployment.

• An increase in economic inactivity leading to a surplus of jobs.

• A significant drop in consumer spending due to low inflation.

What was the unemployment rate in the three months leading to April?

• 4.2%

• 4.0%

• 3.8%

• 3.5%

How many job vacancies were recorded, setting a new record?

• 1.3 million

• 1.4 million

• 1.2 million

• 1.1 million

What is the expected interest rate hike by the Bank of England on Thursday?

• 0.35%

• 0.25%

• 0.15%

• 0.45%

By November, what interest rate does Bloomberg Economics predict?

• 1.5%

• 1.75%

• 2.0%

• 2.25%