UK recovery: Economists seriously concerned for economic outlook

18th August 2011

The Financial Times reported that economists were concerned over unemployment which rose to 7.9 per cent in the three months to June, up from 7.7 per cent in the three months to May.

"Economists said the weak employment figures appear to be falling into line with slower GDP growth data, according to which Britain's economy has barely grown over the past nine months."

According to minutes of the MPC's August meeting, which were released on Wednesday, the committee's nine members were unanimously against an interest rate rise to curb inflation. In July, two MPC members had maintained their support for hiking rates.

The Guardian reported that Spencer Dale, the Bank's chief economist, and external policymaker Martin Weale fell back in line with the rest of the MPC and voted for interest rates to remain at their record low of 0.5%.

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