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BoE's “Mr Bean” on interest rates


CliveH

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27 Aug 2013 | 07:57

IFAonline

Categories: UK | Economics / Markets

Topics: Bank of england | Interest rate

 

Charlie Bean, the deputy governor of the Bank of England (BoE), said the Bank has sent a "clear signal" it will not increase interest rates anytime soon as he expressed surprise at investors' reaction to its position.

 

The central bank is "communicating not just to market participants, but to people, to households and businesses, to give them a clear signal that interest rates are not likely to rise imminently," Bean said in an interview with Bloomberg.

 

Under its policy of 'forward guidance', the Bank last month forecast leaving its key rate at a record low 0.5% until late 2016, when it expects the unemployment rate to drop to 7%.

 

......................................

 

So if we want to keep low rates then don't get a job

 

If we want higher rates then employ people.

 

Anyone else see the flaw in this?

 

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