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No base rate change till unemployment falls

Posted at August 7, 2013 | Categories : News

The new Governor of the Bank of England, Mark Carney, has announced that the Bank’s Monetary Policy Committee does not intend to raise the base rate above its historic low of 0.5% until unemployment has fallen to 7% (currently just under 8%).

Furthermore, while unemployment exceeds 7%, the Bank may provide further quantitative easing should another stimulus to the economy be warranted.

Mr Carney added “it is important to be clear that Bank Rate will not automatically be increased when the unemployment threshold is reached”.