Carney's first MPC meeting as Governor keeps Bank Rate unchanged

Carney's first MPC meeting as Governor keeps Bank Rate unchanged

Monetary Policy Committee (MPC) keeps the Bank Rate unchanged at 0.5%

Economic Analysis

04 July 2013

Comment from Stephen Boyle, Head of RBS Group Economics

"Mark Carney's first MPC meeting as Governor signalled two important changes. First, a move towards increased transparency. We don't normally get statements after a no-change decision, but we did today. The statement was a direct attempt to talk down market interest rates, which have risen sharply in recent weeks. The MPC is worried this could hurt the recovery by pushing up the cost of borrowing for companies and households. Second, the use of forward guidance. The Bank of England is clearly leaning towards the introduction of an intermediate threshold - probably for the rate of unemployment - which could pave the way for another bout of QE at the MPC's next meeting in August."

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