The October UK labour market report highlights that unemployment remains steady at 4.3%, but data quality issues create uncertainties, making policymakers cautious about relying on these figures.
Earnings pressures have intensified with regular pay rising by 5.2% annually. This growth is inconsistent with sustainability towards the Bank of England's 2% inflation target, raising concerns.
Policymakers remain focused on easing inflation rather than labour market stability, with the Monetary Policy Committee likely to hold interest rates steady amid ongoing challenges.
The report indicates a cautious approach to monetary policy, forecasting potential rate cuts in February contingent upon clearer data and lessening inflation pressures.
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