Carney Guidance Threshold Strained as BOE Holds Policy

Bank of England Governor Mark Carney’s forward-guidance policy may be buckling under the strength of the U.K. economy.

The fastest growth since 2010 means unemployment could fall to the 7 percent threshold as soon as June, forcing officials to at least consider raising rates sooner than Carney might like, according to Goldman Sachs Group Inc. That’s earlier than the Monetary Policy Committee forecasts. The MPC kept its key rate at a record-low 0.5 percent today and its bond-purchase program at 375 billion pounds ($617 billion), as forecast by all economists surveyed by Bloomberg News.