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Bank of England minutes show policymakers largely in favour of trying "forward guidance''

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(Globalpost/GlobalPost)

LONDON - Policymakers at the Bank of England were nearly united in their wish to implement plans by new governor Mark Carney to issue "forward guidance" on interest rates.

Carney introduced the concept last week, saying the bank probably won't raise its benchmark rate — now at 0.5 per cent — until the unemployment rate drops to 7 per cent. Some 750,000 jobs would need to be created to hit that mark, which is not expected until 2016.

Policymakers hope to spur Britain's droopy recovery by giving businesses and consumers confidence that rates will likely remain low. Minutes to the latest meeting show only one member voted against, saying he disagreed on how it would be implemented.

Meanwhile, the Office of National Statistics said Wednesday that unemployment held steady at 7.8 per cent last month.

http://www.globalpost.com/dispatch/news/the-canadian-press/130814/uk-unemployment-holds-steady-though-underlying-signs-show-im