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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
Notes

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.

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