Hold that interest rate

[GastonJ]

Bank of England governor Mark Carney has said the Bank will not consider raising interest rates until the jobless rate has fallen to 7% or below.
Mr Carney said this would require the creation of about 750,000 jobs and could take three years.
The UK unemployment rate currently stands at 7.8%.
The unemployment threshold will hold unless inflation levels threaten to rise too fast or it poses a significant threat to financial stability.
Mr Carney said that until the threshold was reached the Bank would not cut back on its ?375bn asset purchase programme, known as quantitative easing (QE).
While upbeat on the prospects for the UK economy, Mr Carney said it had not reached "escape velocity" yet.
"A renewed recovery is now underway in the United Kingdom and it appears to be broadening," he said.

BBC News - UK interest rates held until unemployment falls

Would that be the real unemployment rate of the frequently fiddled rate which discounts people who are unemployed but unable to get job seekers or whatever it's called and so aren't counted etc? Whichever it is it does sound like an incentive to vote this government back in if you want to keep the interest rate low for 7 more years, because this government doesn't give a monkeys about the unemployed anyway. On the other hand, if you are a saver then it's bad news - maybe BOE rates are staying at 0.5%, but banks are still coining it in with quite high interest rates to borrowers and peanuts paid to savers *shrug* Bankers win either way

Have to say though that this looks like a politically motivated policy rather than a BOE one, which is supposed to be impartial.

[GastonJ]

It also means that any party that promises to get employment going again will be isolated by the masses with mortgages/loans (the nice people in debt) and any party that keeps down the interest rates will be isolated by the masses who want a job. WTG on splitting the country and votes from a non political organisation.... Dodgy and Cleggy couldn't have done it better if they'd tried.

Wonder why Dave and Cleggy like the banks???

[bobwill]

I would like interest rates to go to 15% like it was when I had a mortgage,this would help my retirement savings
It look like the people born just after the war will have to bail out GB ltd again, not by working hard and paying
high interest rates on mortgages and high taxers. This time by giving banks our savings and getting low interest
with inflation rate running at 3% and the banks lending to idiots with credit cards
and charging up to 30% .Then there is rip off Wonga at 4214%

[GastonJ]

While I'd like to see my investments go up so it makes saving money worthwhile; I also have some of my kids just starting to look at mortgages etc. However I'd sooner there were less unemployment and more in work. Problem I see atm is that we've had 3 years of cuts and the lowest interest rates for hundreds of years. I see the debt still rising, banks profiteering from BOE rate, those that have more getting more, and MP's are about to join that crowd with a 10%+ pay rise.

So in 3 years what has been gained for the country as a whole, have we paid any of the debt off - "No", is the debt still rising "Yes". 3 years of cuts for tax bribes in the budget before the election then as usual.