Reaching the Bank of England's (BoE) explicit 7% unemployment threshold does not presuppose an increase in the bank's main interest rate, governor Mark Carney yesterday told the economic affairs committee of the UK parliament's upper chamber, the House of Lords, just hours before the release of new jobs data showing UK unemployment at its lowest level since the start of the financial crisis.

"There is discretion that extends beyond the 7% threshold," Carney said, adding the central bank had