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Interest Rates Decision Gives Business Confidence

 

Bank of England governor Mark Carney today said interest rates would not rise until the jobless rate has fallen to 7% or below.

For the third month in a row, employment and unemployment statistics are heading in the wrong direction for the North East.Bank of England governor Mark Carney today said interest rates would not rise until the jobless rate has fallen to 7% or below.
Commenting on the new Inflation Report and forward guidance document published today, Ross Smith, North East Chamber of Commerce Director of Policy, said:

"The introduction of a seven percent unemployment threshold by the MPC is a good move and will reassure business, providing increased certainty while maintaining a focus on keeping inflation in check.

"It will also give firms a much-needed confidence boost when looking to invest as they know that any plans will not suddenly be derailed by a hike in interest rates.

"However, we would urge the MPC not to be too hasty in changing policy when the seven percent target is reached, bearing in mind that economies differ greatly in different parts of the country."