BOE provides forward guidance

|By:, SA News Editor

As expected, the Bank of England has provided explicit forward guidance, saying its key lending rate will stay at a record low of 0.5% until the U.K.'s unemployment rate drops to 7% from 7.8% in March-May.

The BOE also doesn't intend to "reduce the stock of asset purchases financed by the issuance of central bank reserves" until the unemployment threshold is met.

The Monetary Policy Committee is ready to "undertake further asset purchases" as well if necessary.

The pound (GBB) initially sank against the dollar but quickly recovered and is now -0.1%. (PR)