Mark Carney, the new Bank of England governor, wants to make sure everyone is clear on the definition of a threshold. His first attempt at explaining the BoE’s “forward guidance” policy was met with scepticism by the bond and currency markets. Today during a speech in Nottingham, he had another go. In particular, he was keen to stress that a return to a 7 per cent unemployment rate, the threshold set by the Bank of England earlier this month, would not necessarily lead to a sudden rise in the base rate.
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