Mark Carney, Bank of England governor, has signaled that his flagship policy of linking interest rates to the rate of unemployment will be buried less than six months after its birth, saying the British economy is “in a different place” to that last summer.
Mr Carney flagged the policy U-turn at the World Economic Forum in Davos, letting the news emerge in a series of TV interviews in which he said that unemployment alone would no longer guide policy.
Although his big idea for monetary policy bit the dust, Mr Carney said the BoE had had no plans to raise interest rates “immediately”. He will outline his views fully in a speech on Friday.
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