UK unemployment rose to 5.2% in Oct-Dec 2025 the highest since 2015 outside the pandemic, while regular pay growth slowed to 4.2%, ONS said. Payrolls fell 121k.
Bank of England kept Bank Rate at 3.75% in a 5 to 4 vote, holding policy tight, as UK inflation stood at 3.4% in December 2025. Next MPC decision March 19, 2026.
UK wages rose 6% in November, defying expectations, but jobless claims rose. The Bank of England faces mixed signals as it considers interest rate cuts amid economic uncertainty.
