UK – Take account of unemployment before raising interest rates says TUC to Bank of England

TUC boss Frances O’Grady has urged the government to widen the Bank of England’s remit to take account of unemployment before Threadneedle Street considers raising interest rates. 

Speaking before the start of the TUC’s annual congress, when the Bank governor, Mark Carney, will make a speech, O’Grady said the success of the Bank’s interest rate setters should be judged by their ability to keep unemployment low alongside an existing requirement to keep inflation at or near 2%. O’Grady, who has taken up the matter with Carney, will say that with unemployment still above its pre-crisis level and many people on low incomes heavily in debt, interest rates should remain at historic lows.

At present, the Bank takes account of unemployment and wage growth, but as a secondary consideration to inflation and mainly to judge when increased wages will feed into higher prices.

Chosen excerpts by Job Market Monitor. Read the whole story at Consider unemployment before raising interest rates, Bank of England urged | Politics | The Guardian.