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How will 'forward guidance' affect people with mortgages?

7 August 2013 Last updated at 10:52 BST

The new governor of the Bank of England, Mark Carney, is unveiling a new strategy of "forward guidance".

Under the strategy, the Bank will periodically promise to keep interest rates at a particular level, until certain economic conditions are met.

With short-term interest rates already at historic lows, the idea is to reduce longer-term interest rates and boost confidence.

Adrian Lowcock from investment company Hargreaves Lansdown told BBC Breakfast the move would offer people with mortgages a degree of greater certainty for the future.

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