"The UK Employment Report for October was released yesterday. It showed that vacancies are continuing to rise as the effect of the departure of migrant workers following Brexit remains a significant issue.

Following the end of the Government’s furlough scheme, the economy added 160k new jobs. This will provide a degree of relief for the Bank of England which had cited concerns over jobs as one reason that they had held off on raising interest rates.

The Bank could easily break with the tradition of not raising rates immediately before the Holiday Season by tightening monetary policy at its meeting on December 16th.

Andrew Bailey’s comment that every MPC meeting from now is in play as far as a rise in rates is concerned has sharpened trader’s interest. However, following the surprise that rates weren’t raised at the most recent meeting will add a degree of caution.

The unemployment rate fell from 4.6% to 4.3% as the claimant count also fell. A shortage of workers remains an issue that will exacerbate logistical issues caused by bottlenecks in supply chains.

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