Mark Carney, the new Governor of the Bank of England, has announced there will be no rise in the Bank of England’s base rate until unemployment is below 7 %; part of an intermediate target in his ‘forward guidance’ and translated as, we’re unlikely to see a rate rise for about 36 months… or more….
The ONS recently announced that the UK economy has grown by 0.6% (Q2), with surveys and reports simultaneously offering up positive numbers for some areas of business and house buying but….. there’s usually a but….. Yes, any rise following a fall is good to hear (I get knocked down but I get up again) …..but these numbers are pitched against previous falls. Of course it’s welcome news ….but (here we go again) the underlying issue is how far is it to get us standing again? How far did we fall? Do the numbers compare to 3 months ago, 6 months ago, or 3 years ago? Are there any regional differentiations?
When life gets you down, you know whatcha gotta do? Just keep swimming, just keep swimming, just keep swimming swimming swimming – Dory
As an Independent and sole trader, Step-Up Finance listens and talks with other business owners and I’ve noticed that a primary common characteristic recurring amongst us is that we adapt our businesses to changes, by taking ‘forward guidance’ as an opportunity, we’re able to keep moving forwards.
MC’s announcement might sound as though its from the Dory school of philosophy in ‘forward guidance’ but I’m wondering if the ‘guidance’ bit has been tied-off and left to drag behind instead of a contribution to resilience.
Image credit: Melody Campbell Article credit: Copyright SUF 2013 ©