LONDON (Reuters) – The Bank of England‘s outgoing deputy governor Paul Tucker said forward guidance set by the central bank to hold interest rates steady until unemployment reached 7 percent was a commitment to not tighten monetary policy too soon.
“What this (forward guidance) is saying is we won’t commit to exit (stimulus) prematurely when there’s still slack in the economy,” Tucker said in an interview, a transcript of which was released on Tuesday.
“Unemployment is only one part of assessing slack. Another part is how much slack there is within companies.”
(Reporting by Olesya Dmitracova and Belinda Goldsmith; Editing by Janet Lawrence)
BoE's Tucker says bank committed to not acting prematurely on rates
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