Rate rise linked to jobless cuts

AOL Money Staff
Mark Carney
Mark Carney

Interest rates will not rise from their record low until more than 750,000 new jobs have been created, the Bank of England pledged yesterday in a radical step to bolster the economy.

Households and businesses were told not to expect rate rises for at least the next three years as new Bank governor Mark Carney said rates will remain at 0.5% until the unemployment rate drops to 7%, depending on stable inflation.