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The Bank of England’s monetary policy committee has once again voted to maintain the base rate at 0.5 per cent – the 62nd consecutive month of record-low rates.
The last change to base rate was a 0.5 per cent reduction to its current level on 5 March 2009.
Since August, the Bank of England has sought to give consumers an indication of when base rate is going to rise through a policy of forward guidance.
The overhaul of forward guidance sees the direct link with employment dropped so the BoE can focus on a much wider range of indicators focusing on absorbing all of the spare capacity in the economy. This will see the Bank publish forecasts of 18 more economic indicators for the first time.
As well as unemployment, the MPC will monitor factors such as participation in the labour market, average hours worked and the extent of involuntary part-time working, surveys of spare capacity in companies, labour productivity and wages.