Interest Rate Rise Tag Archive

His very first official act as the new Governor of the Bank of England, Mark Carney stated that UK interest rates would stay at the current record levels as long as unemployment levels remain above 7%. He then went on to state that he didn’t see this event happening before 2016.

However less than 3 months into the job and that statement is starting to look a little premature. With the UK economy improving and manufacturing and confidence levels returning to pre crisis levels, unemployment is starting to fall (from 7.8% in May to 7.7% in July). The Governors prediction could still prove correct and is still backed up by several large investment banks, but this data does counter the whole idea of long distance forecasts steadying the market.