Mark Carney adjusts Bank interest rate policy

According to reports, Mark Carney, governor of Bank of England has overhauled the Banks interest rate policy to reflect falling unemployment and the economic recovery.

Mr Carney has said that unemployment rates have fallen much faster than anticipated and the banks forward guidance policy “is working” and has helped to secure growth.

The Banks rate policy will now be determined not only by unemployment rates but by a wider range of indicators.

Mark Carney has warned the recovery was not secure and that when rates rose, they would do so “gradually”.

The Banks forward guidance policy was introduced last August where Mr Carney stated that the Bank would not consider raising interest rates from their current low of 0.5% until unemployment has fallen to 7% or below.