Chancellor welcomes Bank's 'forward guidance' strategy

Chancellor George Osborne has welcomed the Bank of England's decision to hold interest rates until the jobless rate falls to 7% or below.

Bank governor Mark Carney said this extra clarity was needed to avoid unnecessary fears that interest rates would rise after recent positive economic news.

The move sees the Bank of England joining both the US Federal Reserve and the European Central Bank in providing so-called "forward guidance" on interest rate policies.

Mr Osborne said, "I very much support the decision that Mark Carney has announced today... [People] are going to have greater certainty that interest rates are going to stay low for longer."