The impact of rising interest rates can be seen in the higher rate of unemployment.
This is still considerably above the Bank's 2% target, but it is moving in the right direction.jumped from 4%
to 4.2%. So, there are plenty of signs that monetary tightening is taking some steam out of the UK economy. Members of the Monetary Policy Committee will have to weigh up all the data and make a judgement about the trend that wages, unemployment and inflation are likely to follow over the coming months.Samuel Tombs, economist at Pantheon Macroeconomics, said:"It usually takes time for changes in labour market tightness to feed through to wage growth, and several survey indicators now point to slowing wage increases.
However, he added:"The momentum in wage growth still is too strong for the committee to take a break just yet."
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