Last year, Bank of England governor Mark Carney told us that when the unemployment rate got down to 7% the Bank would have a think about raising rates from the 300-year lows everyone is beginning to think are normal. It seems that's already happened the latest number came in at 7.1%.
Carney has had a think, and he has let it be known around Davos that rates aren't going anywhere. Apparently we are in a "different place" to where we were last summer, so the guidance given then is no longer relevant. Instead, we have to look at many, many other indicators to be sure the UK is at "escape velocity."
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