The good news is that the Bank of England, under new governor Mark Carney, has demonstrated it cares about unemployment. Its ‘forward guidance’, published on Wednesday, means monetary policy, which is being used as an economic stimulus, will remain stable until unemployment falls.
The bad news, however, is that we are no closer to a coherent policy for kick-starting economic growth. The Bank is crossing its fingers in the hope that its current approach will start to bear fruit, in terms of employment, over several years. Importantly, there are particular impacts for institutional investors that have not been well-documented in the mainstream media.
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Image: Bank of England