Carney: No immediate need to increase interest rates

There is “no immediate need to increase interest rates”, Bank of England Governor said yesterday.

Back in August, the Bank of England’s monetary policy committee (MPC) promised to revise interest rates when unemployment fell to 7%. The Bank forecasted unemployment to hit the 7% mark only in 2016.

However, statistics released last week showed that unemployment dropped to 7.1% in November, putting a question mark on Carney’s estimates.

Speaking on the BBC’s Newsnight programme, Carney said: “People understand is that it’s really about overall conditions in the labour market, overall amount of slack in companies.”

He added: “We wouldn’t want to detract from that focus… by unnecessarily focusing too much on just one indicator,” hinting that guidance would start to take a broader view.”

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