Despite record-high unemployment rates, the Bank of England Governor still supports keeping the interest rate unchanged.

On November 11th, a member of the Bank of England's MPC, Greene, has signaled that she remains in favor of keeping the interest rate unchanged. Despite Tuesday's data indicating that the UK's unemployment rate has risen to its highest level since the start of the pandemic. Greene stated that she believes the most difficult period for the labor market has passed and cautioned that businesses are forecasting higher wage growth. Her comments came just a few hours before official data showed that the unemployment rate rose to 5% in the three months to September, which is higher than the economists' expected 4.9% and reached its highest level since the beginning of 2021. Traders responded to this by increasing their bets on a rate cut by the Bank of England. Currently, the market is pricing in a probability of over 80% for a rate cut in December. Greene is one of the more hawkish members of the nine-person Monetary Policy Committee. Last week, she supported the majority decision to keep rates unchanged, while four other officials advocated for a further 25 basis point cut. She described the current policy stance as not being "intentionally restrictive." (FXStreet)