Unemployment drop: 'Forward guidance now muddled'

ITV News economics editor Richard Edgar was listening to Bank of England governor Mark Carney's press conference:

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Big, big changes at the Bank of England: forecast for unemployment reaching crucial 7% threshold 18 months earlier than last report (Q4 2014

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means Bank will consider raising interest rates much sooner than previous forward guidance. But inflation to stay low- fwd gdnce now muddied

In August, Mark Carney issued his "forward guidance" - a promise not to change interest rates until unemployment fell to 7% - in an attempt to provide certainty for markets.

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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.