Deutsche Bank analyst Sanjeev Raja says despite stronger-than-expected UK
economic data for June, the labor market is treading water: unemployment stayed
at 4.9% and payrolls fell by 13,000. Weak aggregate indicators should keep the
MPC temporarily on hold, with markets focused on tomorrow’s inflation data. He
notes tentative stabilisation—vacancies edged down modestly in the three months
to July after trading in a very narrow range all year, implying labor demand
may be near a trough, and the pace of redundancies has slowed.
