BoE to adopt forward guidance for financial markets

BoE to adopt forward guidance for financial marketsThe Bank of England (BoE) under the new leader Mark Carney is set to adopt the formal forward guidance for financial markets.

The minutes from the latest meeting of the central bank's Monetary Policy Committee showed that all the members voted against more quantitative easing. The central bank is aiming to keep its £375bn asset-purchase programme on hold following all its members including new Governor, Mr Carney as well as Paul Fisher and David Miles, who earlier voted in favor of more stimulus, expressed their vote against additional stimulus.

Fisher and Miles were earlier suggesting injecting additional £25bn stimulus into the economy through gilt purchases to boost the economic growth in the country. Carney has indicated that the central bank will not increase interest rates until some targets are met suggesting that the liberal monetary policy will remain intact in the country for some time.

Meanwhile, in a major boost to the government's efforts to improve growth in the UK, the International Monetary Fund has said that it expects the British economy to grow at a faster rate than expected. The IMF now expects the economy to grow at 0.9 per cent this year compared with the 0.6 per cent forecast made in April. The agency has kept its forecast for growth of 1.5 per cent in 2014 unchanged for the country.