Insights

BOE faces challenge as yields skyrocket following disappointing jobs report

exchange68September 13, 2024

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Quick Take

The UK jobs report was released today (June 13,) with unemployment reaching a low of 3.8%, which was lower than the forecasted 4%.
Other metrics indicate wage-price spirals and persistent inflation, complicating the Bank of England’s efforts to manage the economy.
Controlling inflation in the UK may require an economic downturn, notably a recession.
As a result, yields across the yield curve have skyrocketed.
The two-year yield reached its highest level since 2008, with other yields continuing to climb, reminiscent of the financial challenges of the mini-budget experienced last October.

UK pay growth and services inflation: (Source: MacroScope)

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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