The Bank of England (BoE) has announced it will not raise the base rate of interest from 0.5% until unemployment falls to 7% or below.
Governor Mark Carney, just over a month into the role, has said the 7% mark represents the point at which the BoE will "reassess" its interest rate policy. The unemployment rate currently stands at 7.8%. The BoE's median forecast for unemployment in two years is 7.3%, according to today's inflation report, but Carney said longer-term forecasts are uncertain. The Office for Budget Responsibility (OBR) said in its March Economic and Fiscal Outlook that it expects unemployment to peak at 8.0% in 2014 before falling back to 6.9% in 2017. This means there is a very real possibility that...
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