BoE: We will not hike rates until unemployment rate hits 7%

The Bank of England has said it will not raise the base rate of interest before unemployment falls to 7%, and warned investors are still expecting rates to rise sooner than is likely.

In its quarterly inflation report, the Bank unveiled plans to tie interest rates to unemployment, but added its new 'forward guidance' to the market is not unconditional. The 7% mark represents the...