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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.