Bank Of England Inflation Report: Cut Unemployment Rate Forecast

< p > the latest quarterly inflation report released on Wednesday (May 14th). The central bank has basically maintained its expectations for the a href= "http://www.91se91.com/news/index_c.asp" growth rate of less than /a and inflation, but it has lowered the unemployment rate and said it is still not in a hurry to raise interest rates. < /p >
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< p > the Bank of England now expects gross domestic product (GDP) to grow by 3.4% in 2014, the same as expected in February. The growth rate of 2015 is expected to increase to 2.9%, and February growth is expected to increase by 2.7%; and the 2016 economic growth is expected to be 2.8%, which is also the same as that of February. < /p >
< p > but the central bank said that as more long-term a href= "http://www.91se91.com/news/index_c.asp" > unemployed population < /a > return to the job market, the threshold level of unemployment rate that will cause a href= "http://www.91se91.com/news/index_c.asp" > inflation "/a" will rise, and the central bank points out that three years later, the threshold of unemployment rate may be as low as 5.25-5.75%. < /p >
In the three months from March to March, the unemployment rate calculated according to the International Labour Organization (P) standard fell to 6.8%, the lowest level in three months as of February 2009. In February, the central bank said that only the unemployment rate fell to 6.0-6.5% would push up the inflation rate. < /p >
< p > the central bank points out that at present, British enterprises are fully loaded with capacity, but there is still a large number of idle capacity in the job market, and unemployment and average working hours are lower than those before the crisis. < /p >
In P February, the Bank of England has said that idle capacity is about 1.0-1.5% of gross domestic product (GDP). The central bank said today that the proportion of idle capacity has moved down in this area, but no specific figures have been submitted. < /p >
"P >" the direction of idle capacity is uncertain, and the committee is divided internally. Under a certain growth force, this depends mainly on the timing and intensity of the rise in productivity growth, "the central bank said. < /p >
< p > MPC continues to believe that there is still room for reducing idle capacity before raising interest rates. Some economic analysts believe that at least one member of the monetary policy committee may vote to raise interest rates in the coming months. < /p >