The Bank of England is expected to announce new procedures and targets, doing away with monthly rate setting and inflationary targets in favour of “Forward guidance.” This means the end to the current monthly rate settings and a new statement that will indicate to the market what interest rates will be over a longer period. This, they hope, will give more stability to the market rather than having the markets guessing one month to the next on which way rates will go. The new governor Mark Carney is also expected to announce an end to the current inflationary target, which in any case has exceeded this 2% every month since 2009 and results in the governor writing a letter to the exchequer explaining the reasons behind it.
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