'2 in 5 chance' of meeting jobless threshold by 2014 end

"The unemployment rate has fallen a little more than expected in August," Bank of England governor Mark Carney said, "and that is to be welcomed."

He said there was a "2 in 5 chance" of the unemployment rate reaching the 7% threshold by the end of next year.

At that point, the Bank of England Monetary Police Committee will consider changes to quantitative easing and interest rates.

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Bank raises growth forecast

The Bank of England upgraded its growth forecast for 2013 from 1.4% to 1.6% today and announced "the recovery has finally taken hold". The moves comes after government figures showed unemployment had fallen by 48,000.