Weak UK employment data increase the probability of a December interest rate cut to 74%.

Following the weaker than expected UK employment data, the market has increased its expectation of a December rate cut by the Bank of England. For the three months ending in September, the UK unemployment rate rose to 5.0%, higher than the consensus of 4.9% predicted by economists surveyed by the Wall Street Journal. Analysts at the Royal Bank of Canada Capital Markets stated in a report, "Tuesday's labor market data provides further evidence that the Bank of England Governor is looking for evidence of persistent disinflation before making a decision in December." Data from LSEG shows that following the release of the employment data, the probability of a rate cut by the Bank of England in December is priced at 74%, higher than the 57% on Monday.