Bank of England Governor Mark Carney will this week set out his long-awaited strategy for interest rates with a set of policies designed to reassure borrowers that rates will stay low for many months to come.
The new governor is set to outline a plan for ‘forward guidance', the centrepiece of his reforms to UK monetary policy in the Bank of England quarterly Inflation Report due to be released on Wednesday, according to the Mail on Sunday. This will mean the Bank's Monetary Policy Committee will not just set interest rates, but specify conditions under which rates would rise. Most analysts expect future rises to be linked to unemployment levels. Carney (pictured) used forward guidance at Canada's central bank and was asked by the Chancellor to outline how it might be used in the UK. How...
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