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Unemployment figures have dipped to 4.7 per cent, defying analyst predictions and narrowing the Bank of England’s margin for manoeuvre. As inflationary pressures persist, Threadneedle Street faces a pivotal decision regarding the cost of borrowing.

The Monetary Policy Committee has opted to maintain interest rates at 3.75 percent despite a resurgence in inflation. With global energy markets destabilised by Middle Eastern instability, the central bank faces a narrowing window for policy intervention.
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