Thursday, 10 October 2013

UK interest rates held at 0.5%

Source BBC News@ tienganhvui.com


Mark CarneyMark Carney took over at the Bank of England in July



The Bank of England's Monetary Policy Committee (MPC) has again voted to keep interest rates on hold at 0.5%.


It has kept the key borrowing rate at that level since March 2009.


The MPC also said it would make no change to the £375bn of monetary stimulus it is providing through its quantitative easing (QE) programme.


Bank of England governor Mark Carney has said that before interest rates can rise, the unemployment rate needs to fall below 7%.


That stipulation is part of Mr Carney's policy of giving forward guidance.


The idea is to create more certainty for businesses and individuals about the course of interest rates, which may encourage borrowing and investment.


He has forecast that it will take about three years for unemployment to reach his target.


However, there has been speculation that rates may start to go up sooner, given recent indications of healthier prospects for the UK economy.


On Wednesday, the International Monetary Fund lifted its UK growth projection for this year from 0.9% to 1.4%.





Đăng ký: Tieng Anh Vui

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