Rate hike imminent on strong employment data – Aegon AM’s Lynch

by | Jan 18, 2022

James Lynch, fixed income investment manager at Aegon Asset Management, said:

“This is another strong set of employment data out of the UK this morning. The unemployment rate fell more than expected to 4.1% and the UK has set another record for job vacancies.

“The labour market is key for the Bank of England’s medium-term outlook on inflation. If the signs are there for wage rises in the future, then inflation is going to be longer lasting than what is currently being driven by spiking energy prices.

“With inflation still to rise further over the next three months and Covid-19 restrictions being eased – which will help economic activity – plus a tight labour market, we expect the Bank of England to raise interest rates to 0.50% in its next MPC meeting on 3rd February.”

 

 

Related articles

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x