Interest rates to be held until unemployment drops to 7%
The new Bank of England governor, Mark Carney, has said the Bank will not raise interest rates until UK unemployment has fallen to 7%. It currently stands at 7.8%.
He also said that until that threshold was reached the Bank would not cut back on its £375bn asset purchase programme.
Mr Carney said: "The MPC intends, at a minimum, to maintain the current exceptionally accommodative stance of monetary policy until economic slack has been substantially reduced."
However he said price and financial stability would take precedence over the unemployment threshold.
07 Aug 2013