Bank Of England Ties Rate Rise To Fall In Unemployment

Bank of England announced tying its key lending rate to drop in the U.K.’s unemployment rate in its forward guidance. Bank of England’s new Governor Mark Carney in his first quarterly-inflation-report conference, indicated the Monetary Policy Committee intends not to raise the bank rate from its current level of 0.5 percent at least until the unemployment rate hits the threshold of 7 percent. The forward guidance marks one of the new Governor’s first departures from the reign of his predecessor Mervyn King. The guidance is similar to that issued by the Federal Reserve in the U.S. The forward guidance also…