Unemployment Concerns for BOE

The majority of economists in a Reuters poll believe that Britain’s unemployment rate will hit 7% almost two years ahead of the initial projection given by the Bank of England.  However, those polled believe interest rates will stay put for at least another year, even if the Bank of England unemployment threshold is reached soon.

According to the poll of over 50 economists, Britain’s current unemployment rate of 7.1% will steadily fall in the coming months and reach Mark Carney’s pledged rate for considering interest rate rises of 7% early next year.

As for whether or not the Monetary Policy Committee will lower the jobless threshold, around two-thirds of economists polled (35) said it would not.

IB Times

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