Bank of England ties monetary policy to unemployment
The Bank of England (BoE) today pledged to maintain its accommodative policy stance while unemployment remains above 7%, becoming the fifth major central bank to introduce explicit forward guidance.
The Monetary Policy Committee (MPC) will not raise the Bank Rate – currently at 0.5% – or reduce its asset holdings – £375 billion at present – "at least until the Labour Force Survey headline measure of the unemployment rate has fallen to a threshold of 7%", the Bank of England said today in its
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