View more on these topics

BoE sends ‘clear signal’ interest rates will be held


Bank of England deputy governor Charlie Bean says officials are sending a “clear signal” they will not raise interest rates in the near future.

In an interview with Bloomberg at the Jackson Hole Economic Policy Symposium, Bean said the bank was “communicating not just to market participants, but to people, to households and businesses, to give them a clear signal that interest rates are not likely to rise imminently,”

Earlier this month, BoE governor Mark Carney said the bank would keep the base rate at 0.5 per cent until the UK’s unemployment rate falls below 7 per cent unless inflation spikes.

The Bank is also prepared to add to QE while the unemployment rate remains above its desired level.

Speaking to Bloomberg, Bean said: “What we are trying to do is explain as clearly as we can, what are the factors that will guide policy going forward, recognizing the world is an uncertain place.

“The question of whether what is in the market is warranted or not depends very much on your view of how much scope there is for expansion before inflationary pressures start manifesting themselves.”

According to the Office for National Statistics, the UK’s unemployment rate currently stands at 7.8 per cent.

The Bank of England expects median unemployment to stand at 7.3 per cent over the next three years, the Inflation Report shows, meaning the base rate is likely to remain at its historic low throughout the forecast period.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm