Research Team at TDS, notes that the UK unemployment rate held steady at 5.1% for the three months ending in January, against their expectation of a slight tick up to 5.2%. Key Quotes “Wage growth ex bonuses ticked up to 2.2% 3m/y, surprising both us and the market to the upside, while the more important private sector wages ex-bonus jumped to from 2.2% to 2.4% 3m/y. This measure of wage inflation, which is favoured by the MPC, should reassure them that cost pressures are likely to build gradually over the course of the year, putting them on track for a rate hike in November 2016. Generally speaking, the labour market remains tight in the UK – while nominal wage growth is still a bit soft, the unemployment rate is low and the employment rate remains at a record high. Also today, the Chancellor presents his budget, which we expect to walk a relatively non-controversial line ahead of the EU referendum in June. The Budget is likely to stick with “safer” measures such as infrastructure projects, education reform, tax avoidance crackdowns, etc.” For more information, read our latest forex news.