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 Biotech Growth: we will ride out this storm

Biotech Growth: we will ride out this storm

Geoffrey Hsu of Biotech Growth Trust says the sell-off in biotechnology stocks represents a buying opportunity for long-term investors.

Play Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

Sector Spotlight: Kleinwort Benson's Choukeir on UK equities

In our first Sector Spotlight of the year we explore UK equities on the back of the extreme market turbulence in 2016.

Play Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Your Business: Cover Star Club

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

Profile: PortfolioMetrix is on a mission to kill 'Frankenstein' systems

In a buyers’ market for off-the-peg discretionary management, self-funded start-ups begin at an inherent disadvantage

Wealth Manager on Twitter