Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Carney tipped to cut unemployment rate rise threshold to 6.5%

Carney tipped to cut unemployment rate rise threshold to 6.5%

Speculation is mounting that Mark Carney will alter his policy to enable interest rates to stay lower for longer following the sharper than expected fall in unemployment.

Last summer the Bank of England governor said rates would not rise until unemployment fell to 7% as he ushered in a new era of forward guidance. The move was designed to encourage people to borrow and spend more with the assurance that rates would stay low for a long period.  

However, as the Bank’s monetary policy committee prepares for its first meeting of the year later this week there is talk Carney will change this threshold to 6.5%.

This change in tack has been prompted by the sharp fall in unemployment in the last three months of 2013, which saw the jobless rate fall from 7.6% to 7.4%. With inflation remaining subdued and the economic recovery gathering momentum there is no pressure for a rate rise in the near future.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter