Bank sees 'no immediate need' for rate rise despite jobless slump

The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.

The unemployment rate fell by more than expected this morning, from 7.4% to 7.1% in the three months to November, prompting a rise in gilt yields. Data from Tradeweb shows the yield on 10-year gilts rose by 2.84% to 2.9% following the release of the data at 9:30am. The Bank of England has previously said it will consider increasing interest rates when the unemployment rate falls to 7%, a move which would be negative for bondholders. The faster-than-expected fall in the unemployment rate has prompted market participants to anticipate a rise in interest rates earlier than previously ...