BoE says rates on hold 'for some time' as it scraps unemployment focus

The Bank of England has today said it will not hike rates "for some time to come" - with the base rate potentially at 2% by 2017 - as governor Mark Carney begins to alter his forward guidance policy.

Carney (pictured) said last October that rates would not begin to rise until the unemployment rate in the UK fell to 7%. However, a rapid decline in the unemployment rate - which Carney conceded has surprised the Bank - has left the rate at just 7.1% by the end of 2013. As such he has been forced into something of a U-turn on forward guidance, attempting to push back expectations of a rate rise. To that end, unveiling the Bank's quarterly Inflation Report today, Carney stressed rates will remain at a record low of 0.5% "for some time to come". The Bank will now attempt to give m...