Mark Carney, Bank of England governor, has signaled that his flagship policy of linking interest rates to the rate of unemployment will be buried less than six months after its birth, saying the British economy is “in a different place” to that last summer.
Mr Carney flagged the policy U-turn at the World Economic Forum in Davos, letting the news emerge in a series of TV interviews in which he said that unemployment alone would no longer guide policy.
Although his big idea for monetary policy bit the dust, Mr Carney said the BoE had had no plans to raise interest rates “immediately”. He will outline his views fully in a speech on Friday.
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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