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Bank of England's Mark Carney announces rates held

7 August 2013 Last updated at 14:00 BST

UK interest rates will remain at their historic low point of 0.5% until the unemployment rate has fallen to 7% or below, Bank of England governor Mark Carney has said.

Mr Carney said the link between interest rates and unemployment levels would require the creation of 750,000 jobs and could take up to three years.

Mr Carney also said that while he was upbeat on the UK economy's prospects, it had not reached "escape velocity" yet.

John Moylan reports.

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