Doubts cast on BoE rate rise stance

Sterling rose to an eight-month high on Wednesday after official data showed unemployment had fallen from 7.8% to 7.7% in the three months to July. The improvement has led some investors to believe that the Bank of England may have misjudged its forecasts for when a future rate rise will be on the cards, and that action could be taken as soon as next year. Under ‘forward guidance', a strategy introduced by Carney to deliver explicit guidance regarding the future conduct of monetary policy, the Bank said it would not consider raising interest rates until the unemployment rate has falle...