The claimant count rate rose in the U.K by 2.5 percent in May inline with the previous and the forecasted 2.5% rise, while the jobless claims count rose 9,000 after rising 7,200 the prior month yet above the expected rise of 8,000, while the ILO unemployment rate rose in April to 5.3% slightly above the prior and expected rise of 5.2%.
The trade balance also came worse than expected in April, the visible trade deficit widened to 7.6 billion from the previous deficit of 7.4 billion and worse than the expected deficit of 7.3 billion, while the total trade deficit widened to 4.3 billion from 4.0 billion back in March.
Though the BOE expected the depreciating Pound would help economical growth, yet so far it hasn't since food and energy prices continue to diminish the benefits of a depreciating currency, this was also seen in the United States yesterday.
Yet the problem now for the BOE is figuring out how to deal with the current situation, the economy is lowing down severely yet Mr. King is limited with options since inflation continues to skyrocket on the back of rising commodities! Meanwhile house prices and consumer confidence continue to fall sharply.
Britons are cutting back on spending now as oil prices soared to a record high, while banks are tightening their credit conditions already which would only add further burden to Britons and their spending and accordingly economical growth, and now to make things even worse the labor market seems to have started deteriorating, would you call that a similar scenario to what happened in the United States, well I would call it that, and the only thing left now for the BOE is to pray that the slowing growth could help tame inflation until they can figure how to deal with this!