BoE may delay interest rates rise

<p>Interest rates may not rise when unemployment drops to seven per cent.</p>

The Bank of England has confirmed it may delay a change to interest rates even further.

New governor of the Bank of England Mark Carney previously said the Bank would increase interest rates from 0.5 per cent – a record low for the UK – when unemployment drops to seven per cent.

However, in the latest minutes released by the Monetary Policy Committee, the Bank said it will consider holding back a rate rise even further.

The Bank of England said: "There could be a case for not raising bank rate immediately when the seven per cent unemployment threshold was reached."

Interest rates in the UK have been held at 0.5 per cent since March 2010 despite pressure from high inflation. But inflation has recently dropped close to the target of two per cent, giving the Bank more freedom over its decision.

Data from the Office for National Statistics shows that unemployment in the UK currently stands at the 7.6 per cent mark.

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