UK's central bank, the Bank of England (BOE) has now made any changes to the forward guidance policy this month and kept its interest rates at their current low level during January.

Experts believed that the monetary policy committee (MPC) would keep the Bank's benchmark interest rate at 0.5 per cent as per its forward guidance policy. The policy, initiated by governor, Mark Carney, states that the central bank will keep its rates at record low levels until unemployment falls to seven per cent or below. Mark Carney, the governor of the Bank of England has indicated that the central bank is likely to keep interest rates low even after risks of housing bubble or a fall in unemployment.

Carney said that the fall in unemployment will not automatically result in a rise in interest rates in the UK. Experts have said that even as the economic indications are improving, the BoE is not set to increase its interest rates form the record low of 0.5 percent until unemployment falls to 7 percent. Carney launched the "forward guidance" policy in August in the country where he affirmed that the central bank will not cut its interest rate until the unemployment level falls to a certain level.