David Milliken

David Milliken 2 min read By David Milliken LONDON (Reuters) - Job vacancies have dried up faster in the United Kingdom than

Investors added slightly to their bets on interest rate cuts by the Bank of England next year and sterling weakened as official data showed consumer prices rose by an annual 2.6% in November

The Bank of England looks set to hold interest rates at 4.75% on Thursday, despite signs of a slowing economy, as persistent inflation pressures limit it to a "gradual" approach towards cutting borrowing costs.

The Bank of England kept its main interest rate unchanged at 4.75% on Thursday but policymakers became more divided about whether rate cuts were needed to tackle a slowing economy. But BoE Governor Andrew Bailey said the central bank needed to stick to its existing "gradual approach" to cutting rates. "With the heightened uncertainty in the economy we can't commit to when or by how much we will cut rates in the coming year," he said.

The Bank of England building, in London, on Nov. 7. HENRY NICHOLLS/AFP/Getty Images Listen to this article

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Activity in Britain's construction industry grew at the slowest pace in six months in December, dented by a further fall in house-building, a survey showed on Tuesday.

Britain's largest retailers including clothes group Next and supermarkets Tesco, Sainsbury's and Lidl were the big winners at Christmas, ahead of what is set to be a tough 2025 marked by spending restraint and tax rises. Britain's economy has struggled to grow in recent years and companies are now bracing for the new Labour government's solution - a hike in employer taxes to invest in infrastructure and public services, but which bosses fear will lead to higher costs and lower hiring. Trade body the British Retail Consortium (BRC) said growth was minimal in the final quarter of the year - in effect a fall in sales volumes once higher prices are taken into account - and the higher taxes due in April will likely push up prices and cut investment in stores and jobs.

Britain's long-term government borrowing costs hit their highest since 1998 on Tuesday, adding to the problems facing finance minister Rachel Reeves who plans to borrow hundreds of billions of pounds to finance higher public investment and spending.

By David Milliken LONDON (Reuters) - Lawmakers from Britain's upper house of parliament told the government on Monday to curb incapacity and disability benefits which cost more than the country's armed forces.