The Bank of England’s new governor Mark Carney has announced that interest rates will not be increased until unemployment drops below 7% insuring they are unlikely to move above their current historic low of 0.5% until at least the end of 2016.
The governor said that even though a “renewed recovery was now underway” in the UK it remained the slowest on record.
He told the BBC that keeping interest rates at the current level until unemployment fell below 7% was expected to boost the economy by “more than half a percentage point of GDP”.
But he warned that this prediction should be taken “with a grain of salt”.
By confirming interest rates will hold at 0.5% he is aiming to create certainty for businesses and individuals.
Vernon Building Society launches Junior Regular Saver to help next generation build good money habits 
Iran war pushing up borrowing costs for North West SMEs, believes Azets specialist 
Together upsizes securitisation facility to £1.2 billion