Forward governance just got a little more hard to predict.

When the new governor of the Bank of England enter the bank he reassured the financial markets that his method of forward governance would put an end to the uncertainties of the markets in regards to the decisions it made. To back this up he laid down a list of criteria, such as job numbers and inflation levels that would have to be met in order for them to consider raising the UK’s interest rates from their current historic low levels.

This all sounded fantastic at the time and home owners across the country slept easier know that they would at least have a degree of heads up before rates started rising, and then they would be a slow incremental rates.

However if anything the markets have been more unpredictable than ever, with surprising and unexpected inflationary numbers, unemployment numbers, consumer confidence levels and overall health of the UK and further afield seemingly changing on a daily basis. Only a couple of weeks ago, following the fall in unemployment, we were all being warned that rates would have to go up this year rather than in 2015 as previously though. Then we had unexpectedly low inflation figures, which prompted experts to change tact and predict that we wouldn’t see a rise until after the general election 2015.

This is why it is more prudent not to try to second guess the markets and just make sure that in either eventuality you are covered financial and emotionally.