Bank of England to Unveil New Rate Setting Guidance on Wednesday

The Bank of England governor, Mark Carney, will unveil new guidance for setting interest rates on Wednesday, in his most significant announcement since arriving at Threadneedle Street. He will attempt to convince consumers, small businesses and international money markets that only when the upturn is established will borrowing costs rise.

The more transparent stance by the Bank is in response to criticism that it has failed to create the foundations for long-lasting growth following the 2008 banking crash.

George Osborne asked Carney to review the Bank’s remit, which is to maintain inflation at 2%, and consider whether broader criteria would allow the monetary policy committee (MPC) to take a more activist stance when setting rates.

Carney will lay out his plans at a televised press conference that analysts say will set the tone for his five-year tenure as governor.

via The Guardian

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