Governor Mark Carney from the Bank of England to Set New Plans

    OXFORD, ENGLAND, August 09, 2013 /24-7PressRelease/ -- In what is perhaps viewed as his most important announcement since being inducted as the governor of the Bank of England, Mark Carney is set to reveal new plans with regards to setting interest rates and attempting to convince local businesses, consumers and global financial markets of a positive move related to lending costs in the UK. This was in response to unfavorable judgment from critics saying that the Bank of England has failed to produce solutions for economic growth immediately after the 2008 global recession. Carney is set to announce his thorough plans for the BoE during a televised press conference on Wednesday that will likely give insight on his five-year position as governor.

Carney also happens to be the chairman of the Monetary Policy Committee (MPC) of the BoE, which is responsible for setting the interest rates in order to keep the inflation at low levels. Financial analysts are already making predictions as to how Carney's big announcement on Wednesday will turn out and have come up with five possible outcomes:

The MPC will lean more towards the status quo and will reject forward guidance, which Carney favours.
If forward guidance is seen as a key need, the MPC will only agree if there is a link to raise interest rates.
They will mimic the strategies of the US Federal Reserve and focus on improving unemployment rates.
The MPC will do a variation on improving unemployment with a link to a minimum growth in the GDP.
Worst case scenario: the MPC is prepared to spike interest rates if unemployment fails to improve.

The likelihood of any of these options can go either way, provided that Carney will be able to have thorough discussions with the members of the MPC regarding top issues that the BoE needs to address. George Osborne requested that Carney should review the BoE's remit, which should reflect a maintained inflation rate of 2 per cent. He added that Carney must consider if a broader set of criteria would allow for more active flexibility by the MPC when setting the interest rates.

Regardless of how the MPC will make their decision, Carney intends to make a similar stance with his American contemporary, Ben Bernanke, chairman of the Federal Reserve in the United States, whose actions have significantly saved the US from further economic ruin. Such a move might not be agreeable to some members of the MPE according to several financial analysts closely monitoring the situation, but until Carney's public announcement, such things will remain a speculation until further notice.

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