Report: UK employment data indicates that the Bank of England is unlikely to raise interest rates.

James Smith of the Dutch International Group stated in a report that the weak UK labor market data suggests that "the threshold for the Bank of England to raise interest rates is very high." The UK unemployment rate remained at a high of 5.2% in the three months leading up to January. In the same period, the average wage increase, excluding bonuses, slowed from 4.2% in October to December to 3.8%. Smith said, "We still believe that the next step is more likely to be a rate cut, even though the timing is becoming more uncertain." However, data from the London Stock Exchange Group shows that the continuously rising energy prices are leading to a 60% chance of the market pricing in a rate hike by the Bank of England in June.