Investing.com - The U.K.’s jobless rate inched up unexpectedly in December, dampening expectations the Bank of England may raise interest rates sooner than previously anticipated, official data showed on Wednesday.
In a report, the U.K. Office for National Statistics said that the rate of unemployment ticked up to 7.2% in December from 7.1% in November. Analysts had expected the jobless rate to hold steady at 7.1%.
The Bank of England previously announced plans to keep interest rates on hold at record lows as long as the U.K. unemployment rate remains above 7%.
The report also showed that the number of people claiming unemployment benefits in the U.K. declined more-than-expected in January.
The claimant count fell by a seasonally adjusted 27,600 last month, compared to expectations for a decline of 20,000 people. December’s figure was revised to a drop of 27,700 people from a previously reported decline of 24,000.
Meanwhile, the average earnings index rose by a seasonally adjusted 1.1% in December, compared to expectations for a 1% increase, after rising by 0.9% in the previous month.
Following the release of the data, the pound turned lower against the U.S. dollar, with GBP/USD shedding 0.04% to trade at 1.6677, compared to 1.6720 ahead of the data.
Meanwhile, European stock markets remained mixed. London’s FTSE 100 rose 0.1%, the EURO STOXX 50 inched down 0.3%, France’s CAC 40 dipped 0.1%, while Germany's DAX slumped 0.2%.