Policymakers also discussed other policy options, including cutting its main interest rate and giving explicit guidance on the future path of rates.
For Bank watchers, perhaps more important is how he has ditched the simple revolutionary system of so-called forward guidance on the future path of rates, introduced only last summer, for a more complex and fuzzier approach (and see the note I wrote last night for more on this).
"In the committee's view, the implied rise in the expected future path of bank rate was not warranted by the recent developments in the domestic economy," the bank said.
There are two key phrases in the Bank of England's surprise statement (see 12.06pm) 1) The first is that "the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy".
And here's Weale's conclusion, in which he explains his doubts over the power of the policy: A theory-based analysis suggests that the effect [of forward guidance] should be powerful, provided that the policy leads to markedly lower expectations of the future path of interest rates and thus on the date of the first increase in Bank Rate.
Or to put it another way, the big change between Carney's Bank of England and that of his immediate predecessors is that they refused to talk about what they thought the future path of interest rates would be, whereas he relishes making non-binding, very general statements that interest rates should remain low - unless the Bank of England's view on spare capacity turns out to be wrong.
Though much criticised, the central bank's efforts to signal the future path of interest rates have probably reassured firms, increasing their willingness to borrow and invest.
