Carney announces phase two of forward guidance

Using this morning’s quarterly inflation report, Bank of England governor Mark Carney has outlined the bank's stance on future interest rate decisions.

With the inflation rate already meeting the BoE’s target, and the unemployment level fractionally above its previously set target, the question is: when will interest rates rise?

The committee has set out a second phase made up of 18 targets which the BoE would like to see achieved before change is implemented. Fundamentally it would like to see higher income, fuller employment and a more solid economy before looking to gradually increase the rate.

The outlook for UK home owners would suggest that they can look forward to these historically low levels of interest rate remaining for some considerable time to come.  

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.