British Assets Fluctuate Amid Cooling Labor Market, Increasing Pressure on Bank of England and Finance Minister Reeves

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Nov 11 2025

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Source: CNBC

U.K. Labor Market Trends: The U.K. unemployment rate rose to 5% in the three months to September, with a decrease of 32,000 payrolled employees, indicating a weakening labor market that may influence economic policies.
Interest Rate Speculations: Financial markets are pricing in a 75% chance of a rate cut by the Bank of England in December, as analysts suggest that the labor market's decline could lead to lower pay momentum and inflation.
Government Budget Pressures: Finance Minister Rachel Reeves faces pressure to adjust tax policies in her upcoming Autumn Budget, with expectations of breaking a manifesto pledge not to raise taxes on working individuals amid a fragile economy.
Market Reactions: The British pound fell against the U.S. dollar and euro, while yields on U.K. government bonds decreased, reflecting market concerns over economic growth and the potential for lower interest rates.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.