Bank of England ties monetary policy to unemployment

Bank of England governor Mark Carney

The Bank of England (BoE) today pledged to maintain its accommodative policy stance while unemployment remains above 7%, becoming the fifth major central bank to introduce explicit forward guidance.

The Monetary Policy Committee (MPC) will not raise the Bank Rate – currently at 0.5% – or reduce its asset holdings – £375 billion at present – "at least until the Labour Force Survey headline measure of the unemployment rate has fallen to a threshold of 7%", the Bank of England said today in its qua

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