Mr Carney has also said that the Bank will not consider raising interest rates until the jobless rate falls to 7% or below. The timing of a rise in interest rates could as it has been widely reported have a significant political impact, but Mr Carney says that will not affect his decision making. In an interview with Channel 4 News he said he would raise interest rates just before the 2015 general election "if I had to".
The Bank said: "The MPC [Monetary Policy Committee] attaches only a two-in-five chance to the... unemployment rate having reached the 7% threshold by the end of 2014. "The corresponding figures for the end of 2015 and 2016 are around three in five and two in three respectively."
“There are still hurdles to overcome before growth gets back to a sustainable level, including boosting business investment and trade”
The Bank said clearly that it was not planning to raise interest rates any time soon from their current record low of 0.5%. Even when - and if - the jobless rate reaches 7% the Bank will not automatically move to change the cost of borrowing.
Interest rate decisions are traditionally used to control inflation and there is no obvious pressure for an interest rate rise on that basis, official figures said inflation had fallen from 2.7% to 2.2% in October. If you have concerns about the rates of interest you might be paying if recovery really takes hold Enables IFA’s are here to help explore your options.
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It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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