The FT is a bit sensationalist on the headline but they’ve just published an article saying:
Mark Carney, governor of the Bank of England, has ditched his monetary policy guidance based on unemployment less that six months after it was established, saying the British economy is “in a different place” to that of last summer.
They cite his comments from interviews at Davos. They draw the conclusion that the BOE will drop the 7% unemployment forward guidance altogether but that’s a bit of a leap from his actual comments, which we had earlier.
Cable is down about 10 pips on the headlines on the idea that no forward guidance means rates can stay lower longer.
