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Labour Market (Jan./Feb.)

The labour market remained tight in January. Even so, the Bank of England will breathe a sigh of relief as wage growth is easing. Together with the collapse of a couple of US banks having tightened financial conditions, the risk to our forecast that the Bank will raise interest rates next Thursday from 4.00% now to 4.25% are shifting to the downside.

UK Drop-In (15th Mar.): Will the Spring Budget see Jeremy Hunt splash the cash or hold off until the election – or will new OBR forecasts tie the Chancellor’s hands? Register for our special 20-minute budget day online briefing with Neil Shearing, Paul Dales and James Reilly. Register Now. 

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