An unexpected dissent from Bank of England's policymaker and its robust jobs data created new concerns last Wednesday. The bank's record low rates are doubted after Bank of England vowed to keep its rates at the current level.
The new Bank of England Governor Mark Carney promised to keep the bank's rates low until the unemployment rate reached 7%. Carney forecasted that the unemployment rate would take three years to occur. This was a new approach for the central back which is strongly supported by the country's Finance Minister George Osborne.
The minutes of the central bank's August policy meeting disclosed an official thought. This was regarding the new guidance on safeguards against over inflation that was seen to be too weak. Meanwhile, an official data showed a big number of people claiming unemployment benefits.
Ten- year gilt yields surged five basis points nearing a two-year high. This was after the markets brought forward expected increase in the central bank's interest rates recorded at 0.5% low.
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