Unemployment and inflation fall

Britain's jobless rate and prices may be falling, but the pound is creeping up.

There was good news for the Bank of England this week as UK unemployment fell to 7.4% in the three months to October, the lowest rate since 2009, and inflation hit a four-year low of 2.1% in November.

However, minutes from the Bank's December meeting revealed that members of the interest-rate setting Monetary Policy Committee (MPC) were starting to worry about the strength of the pound. Sterling is near a five-year high against other major currencies.

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