UK jobless falling faster than thought

According to a poll by Reuters, LONDON British unemployment is falling faster than previously thought and will reach the Bank of England’s 7 % threshold (when it stated it would consider an interest rate rise) before 2015.

The poll of 50 economists, taken this week, suggests it will fall steadily in the coming quarters and reach 7% early in 2015.

Samuel Tombs, at Capital Economics, said “recent sharp falls in unemployment will probably continue over the next few months. It will still take a year or so to reach 7% but growth in the workforce should remain strong”.

The Bank of England has stated it will not discuss raising interest rates from their record low of 0.5% until the goal is met.

Britain’s economic recovery picked up pace last year and some economists say the Bank will lower its target and hold borrowing costs low until the country’s turnaround broadens out.