Forward guidance ‘will boost economy’

<p>Mark Carney has suggested the economy will be boosted by forward guidance.</p>

Providing forward guidance about the future of interest rates in the UK will help to boost the economy, the governor of the Bank of England has claimed.

Mark Carney, who took over the role from Sir Mervyn King recently, stated that the prediction ought to be taken with a "pinch of salt".

Speaking to BBC News, he added it was "striking" that there were no women on the Monetary Policy Committee, which sets interest rates in the UK.

The base rate has been kept at a record low of 0.5 per cent since March 2009 and Mr Carney confirmed this situation will remain until unemployment falls below the seven per cent mark.

After growth of 0.6 per cent was recorded in the second quarter, the Organisation for Economic Cooperation and Development said the recovery was "firming" in June.

The economy had expanded by just 0.3 per cent in the first three months of the year.

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