Investing.com -The U.K. unemployment rate unexpectedly ticked up to 7.2% in the three months to December, according to data released on Wednesday, reinforcing the view that the Bank of England is likely to keep interest rates on hold for some time to come.
The Office for National Statistics said the unemployment rate rose to 7.2% in the three months to December from 7.1% in the previous three months.
Analysts had expected the jobless rate to remain unchanged.
The number of people claiming unemployment benefits in the U.K. declined more-than-expected in January, the ONS said. The claimant count fell by a seasonally adjusted 27,600 last month, to 1.22 million.
Meanwhile, average earnings index rose by 1.1% in the year to December, a 0.2% increase on the previous month.
Separately, the minutes of the BoE’s February meeting showed that officials did not hold a vote before updating its forward guidance on rates this month, indicating a unanimous belief that an adjustment was necessary.
The bank updated its forward guidance last Wednesday, saying it will not raise rates until the spare capacity in the U.K. economy has been fully absorbed, which it does not see happening until 2015.
Last August the bank pledged not to consider a rate increase until the unemployment rate dropped below 7%, but that target is now set to be reached much sooner that the bank had anticipated.
The bank said it would consider a broader range of indicators, including wages and productivity when deciding to raise rates, and added that when rates rise they will do so only gradually.
BoE Governor Mark Carney also warned that the U.K. economic recovery had "gained momentum", but warned that it was "neither balanced nor sustainable".