Bank of England to target unemployment & inflation in major policy shift
LONDON (AFP) - The Bank of England announced a major policy shift on Wednesday, saying explicitly that it was now targeting unemployment as well as inflation.
The new head of the bank Mark Carney provided clear guidance on when it can be expected to raise Britain's record-low interest rate.
The Canadian national, speaking at his first policy press conference since becoming BoE governor last month, also noted that "a renewed recovery is now under way" for Britain's economy.
In a statement, the BoE said that it "intends not to raise Bank Rate from its current level of 0.5 per cent at least until ... the unemployment rate has fallen to a threshold of seven per cent" - as it provided markets with so-called forward-guidance as used by the US Federal Reserve.