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ING: UK's Weak Labor Market Raises Questions About the Necessity of Rate Hikes

ING: UK's Weak Labor Market Raises Questions About the Necessity of Rate Hikes

金十金十2026/05/19 07:47
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```htmlGolden Ten Data reported on May 19 that ING analyst James Smith stated in a report that weaker-than-expected UK labor market data may reinforce the Bank of England’s cautious stance. Over the three months to March, the unemployment rate rose to 5.0%, the number of salaried employees dropped sharply, and wage growth slowed. He pointed out, "The weakness is mainly concentrated in consumer-facing industries most affected by last year’s tax increases and minimum wage hikes. The upcoming energy shock will only intensify this pressure." Smith said that under these circumstances, the economy seems less susceptible to the second-round inflationary effects resulting from rising energy prices, raising questions about whether the Bank of England will increase rates. "We still expect a rate hike in June, but this is far from certain," Smith noted.```
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