Thursday 23 January 2014

Early interest rate rise could jeopardise economic recovery


Commenting on the latest labour market statistics published yesterday (Wednesday) by the Office for National Statistics, TUC General Secretary Frances O’Grady said:
“It’s encouraging to see another big fall in unemployment, particularly amongst young people who until now haven’t benefited from rising job levels.
“But while headline unemployment is within a whisker of the Bank’s forward guidance threshold, an early interest rate rise would clobber mortgage holders and businesses – jeopardising our economic recovery.
“Patchy levels of jobs growth in parts of the north and the continuing squeeze on living standards should make the Bank of England think twice before considering a rate raise.”
The TUC’s latest economic report found that the likelihood of being in work has fallen in the North East, North West, West Midlands and South West since mid-2010, despite the number of people in work increasing by around 780,000 across the UK.

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