TUC welcomes Bank of England's unemployment target for interest rates

date: 7 August 2013

embargo: For immediate release

Welcoming the Bank of England's announcement today (Wednesday) that it will not raise interest rates until unemployment has fallen below seven per cent, which it has forecast will take place in 2016, TUC General Secretary Frances O'Grady said:

'The TUC has long campaigned for the Bank to take account of unemployment when setting economic policy.

'Today's announcement shows that the Bank understands a real recovery is something that benefits ordinary people, and not just an upward blip in economists' outlooks.

'The new Governor's outlook also provides a much needed dose of realism after yesterday's 'Boom Britain' headlines. The Chancellor should heed his warning that the UK is still on course for the slowest recovery in output since records began.

'The fact is real wages are set to continue falling throughout 2013 - the longest pay squeeze in over a century ­- and the Bank does not expect unemployment to fall significantly for another three years.

'People will ultimately judge the recovery on the availability of good jobs and whether their disposable income is rising again, rather than economic forecasts and partisan spin.'

NOTES TO EDITORS:

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