interest rate

Bank of England handcuffs interest rates to unemployment

Thu, 08/08/2013 - 12:14 -- nick

The Bank of England (BoE) has promised to keep interest rates on hold until unemployment falls below 7%.

The new governor, former Bank of Canada chief Mark Carney, said the BoE would not consider raising rates from their all-time low of 0.5% until that point was reached.

This is expected to take three years and the creation of 750,000 new jobs, although Carney made clear that this would only trigger an assessment of the rate, not a guaranteed rise.

Unemployment is currently 7.8%, and has shown small falls recently as the economy shows signs of early life.


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