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East Midlands Chamber News

New BoE Governor Set To Make Interest Rates Pledge

New Bank of England Governor Mark CarneyNew Bank of England Governor Mark Carney has indicated that he plans to keep interest rates at their current historic low of 0.5 per cent for an "extended period when he presents his first quarterly update on the UK's economic outlook to the Government.

He is expected to raise the Bank's growth forecasts, lower its inflation outlook and give a radical new commitment to low rates this week, in what is likely to be a further boost for the recovery.

On Wednesday, he will unveil the central bank's long-awaited "unconventional policy" that the Chancellor asked the Bank of England to investigate in his March Budget.

Economists predict the Bank will upgrade growth for this year a little above its 1.2 per cent forecast in May and revise down inflation for 2013.

It will be the second time in a row the Bank has improved the economic outlook in its three-monthly Inflation Report, drawing a line under the years of downgrades since the 2008 recession struck.

Governor Carney is giving his first public speech since taking up his new role at an event in Nottingham organised by DNCC in partnership with the IoD and the CBI later this month. Although the event is fully-booked, businesses wanting to attend can register on a reserve list, which will see any returned tickets reallocated on a first-come, first-served basis.