Mark Carney – Bank of England Governor
The Bank of Englands Monetary Policy Committee (MPC) again decided to leave the UK Interest Rate at 0.5% – this being initially introduced back in March 2009.
This is inline with the monetary policy forward guidance promoted by Mark Carney, the new Governor, and announced alongside the August 2013 Inflation Report. It has been said that unemployment needs to fall below 7% before any increase in interest rates.
The record low interest rates are one of the factors in the current buoyant housing market and will be welcome news for most property investors. It is further good news as Mr Carney has previously indicated that he forecasts that it will take about three years for unemployment to reach this target.
The MPC also voted to maintain the stock asset purchase financed by the issuance of central bank reserves, better known as its quantitative easing (QE) programme. This is therefore held at £375bn which it was increased to in July 2012.
Dull Certainty
The two key aspects announced monthly by the MPC of Interest Rate and QE Programme are becoming very dull with no change for some considerably time.
However it is generally believed that this certainty is likely to continue for some time, with the forward guidance laid out by the Bank along with the level set very high at which any further QE to be required.
This sort of Boring certainity is exactly what the new governor is looking for.
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