UK unemployment dipped to 4.1% in July, its lowest since January, indicating a mixed labor market; earnings growth cooled but remains a concern for policymakers.
Despite a drop in unemployment, earnings growth has slowed, with regular pay rising by only 5.1% YoY, below market expectations, raising concerns over inflation persistence.
The Bank of England is unlikely to change its policy outlook significantly based on employment figures, maintaining a cautious stance amid continued inflation pressures.
Upcoming rate cuts are expected to align with revised economic forecasts, leaving November as a potential candidate for the next Bank Rate adjustment.
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