"The monetary policy committee is likely to remain on hold on the stock of asset purchases at its May meeting"
- Mauro Giorgio Marrano, an economist at UniCredit SpA
U.K. claims for unemployment benefits rose less than expected and unemployment declined, signs that the economy is stabilizing. Claims increased by 3,600 in March to 1.61 million, said the Office for National Statistics on Wednesday.
Unemployment fell to 8.3 per cent from 8.4 per cent in January.
"These figures look pretty good and are suggestive of some reasonable underlying momentum in growth," said David Tinsley, chief U.K. economist at BNP Paribas SA in London and a former Bank of England official. "The fact that unemployment is stabilizing is very good news for the government."
U.K. stocks retreated on Wednesday after Monetary Policy Committee meeting minutes showed law maker Adam Posen ended his support for additional stimulus. The benchmark FTSE 100 index lost 0.38%, or 21.66 points, to 5,745.29. The FTSE All-Share Index erased 0.31%, or 9.24 points, to 2,988.41.
"The minutes were less dovish than the previous one," Mauro Giorgio Marrano, an economist at UniCredit SpA, wrote in a report. This suggest "the monetary policy committee is likely to remain on hold on the stock of asset purchases at its May meeting."
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