Arab Today, arab today boe uk rates held until unemployment falls
Last Updated : GMT 05:28:26
Arab Today, arab today
Arab Today, arab today

BoE: UK rates held until unemployment falls

Arab Today, arab today

Arab Today, arab today BoE: UK rates held until unemployment falls

London - AFP

The Bank of England announced a major policy shift on Wednesday, saying that any rise in its record-low key interest rate would be tied to a drop in Britain\'s unemployment rate. The new head of the bank, Canadian national Mark Carney, speaking at his first policy press conference since becoming BoE governor last month, also noted that \"a renewed recovery is now under way\" for Britain\'s economy. In a statement, the BoE said that it \"intends not to raise Bank Rate from its current level of 0.5 percent at least until... the unemployment rate has fallen to a threshold of seven percent\" -- as it provided markets with so-called forward-guidance as used by the US Federal Reserve. The Bank of England\'s own projections indicate that such a drop from the current unemployment rate of 7.8 percent would not occur for three years. But interest rates could rise earlier should British inflation remain high, it added. British governments have for many years tasked the BoE with using its key interest rate to try and keep the country\'s annual inflation close to 2.0 percent. But Carney on Wednesday focused on the unemployment picture. \"Unemployment is still high. There are one million more people unemployed today than before this (2008) financial crisis,\" said the former head of Canada\'s central bank. The BoE added that its Monetary Policy Committee (MPC) stood ready to provide the economy with more cash stimulus while the unemployment rate remains above seven percent -- and despite a recent recovery of British growth. The Bank of England described its pledge over interest rates and stimulus as \"explicit guidance regarding the future conduct of monetary policy\". Finance minister George Osborne welcomed the shift by the independent BoE. \"Given the exceptional economic challenges continuing to face the UK economy, I agree... that forward guidance can play a useful role in enhancing the effectiveness of monetary policy and thereby supporting the recovery,\" the chancellor of the exchequer said in a published letter to Carney. Markets had widely expected some form of guidance being introduced by Carney, resulting in little change to sterling and London\'s benchmark FTSE 100 index of shares following the confirmation. The Bank of England\'s main interest rate, which has stood at 0.50 percent since March 2009, is closely tied to borrowing costs offered by the retail banking sector. The BoE\'s record-low rate has resulted in cheap loans for home owners but poor returns for people with deposited savings. \"By tying policy to unemployment, which is a clearly measured and very visible economic variable, the Bank is making a communication statement allowing the average man in the street or business owner a much more visible and transparent measure of the Bank\'s thinking,\" said Alistair Cotton, senior analyst at Currencies Direct trading group. Britain\'s economy enjoyed an upturn in fortune during the second quarter of this year, with gross domestic product growth of 0.6 percent, double the rate of the first quarter. In a bid to aid Britain\'s recovery from recession amid deep cuts to government spending, Carney\'s predecessor Mervyn King and the MPC\'s other policymakers agreed to pump Britain\'s economy with £375 billion ($579 billion, 436 billion euros) of new cash under so-called quantitative easing. Under QE, which also began in March 2009, new cash has been created by the BoE to purchase assets such as government and corporate bonds with the aim of boosting lending and in turn economic activity. QE can stoke inflation however as it is tantamount to printing money. Britain\'s current annual inflation rate is expected in the coming months to fall from a 14-month peak of 2.9 percent, the BoE said on Wednesday.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today boe uk rates held until unemployment falls Arab Today, arab today boe uk rates held until unemployment falls

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Haifa Wahby bets on her new drama show

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 15:06 2017 Saturday ,25 March

Dialysis Supplies Dwindle for Syrians

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday