Bank of England ties rates to jobs, markets unconvinced
(Reuters) - The Bank of England broke with tradition on Wednesday, planning to keep interest rates at a record low until unemployment falls to 7 percent or below, which it said could take three years.
Its attempt to steer expectations about future rate moves and bolster a fledgling economic recovery underwhelmed many investors, who brought forward expectations for when rates would rise from 0.5 percent - the opposite of what the central bank was hoping for - although the move faded later in the day.
Mark Carney, who took over as governor just over a month ago, said a recovery in Britain's economy was underway and appeared to be broadening but had a long way to go. Source; reuters.com