Skip to main content

Error message

An error occurred while searching, try again later.
Employment rate plummets amid sterling rate drop – this is not coincidental
Changed financial conditions are having an impact in Britain and the United States, writes JULIAN VIGO

EARLIER this month, the euro-US dollar (EUR/USD) exchange rate fell about the same time that sterling fell after the Bank of England raised its main interest rate by 0.75 percentage points to 3 per cent. This brought borrowing costs to the highest level since 2008.

The exchange rate shift has also resulted in a slowdown in employment growth.

This is a direct result of the US Federal Reserve tightening its policy earlier this year around longer-term interest rates that have moved significantly higher, where stock prices have declined sharply and the dollar has increased in value.

Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
Features / 6 May 2024
6 May 2024
As independent media exposes Establishment media lies about Israel’s genocide in Gaza, claims of anti-semitism are being exposed as a tactic to silence critics, argues JULIAN VIGO
Opinion / 25 January 2024
25 January 2024
The continued hawkishness of Biden’s party is putting it increasingly at odds with its own natural constituency, argues JULIAN VIGO
Features / 14 April 2023
14 April 2023
The ‘Twitter files’ demonstrate McCarthyism v 2.0, argues JULIAN VIGO
Features / 5 August 2022
5 August 2022
JULIAN VIGO looks at how the Democrats became the war hawk party