Bank of England and the US Federal Reserve – what next?

Households and businesses on both sides of the Atlantic want to know what will happen to their loan and mortgage costs over the next few years.

Crucially, when will ultra-low interest rates start rising? Minutes from Bank of England and US Federal Reserve policymakers have provided a few more clues.

The Bank has its forward guidance policy, linking a decision on interest rates to unemployment coning down to 7% of the workforce.

The Federal Reserve has to decide when to taper its creation of new money under the quantitative easing programme.

Hugh Pym has been discussing the latest signals with Alan Clarke of Scotia Bank and Brian Hilliard of Societe Generale.