LONDON, Oct 8 (Reuters) - Executives across Britain believe the Bank of England's new policy of guidance on the future path of interest rates will help the country's economic recovery, a survey showed on Tuesday.
Two thirds of the Institute of Directors members say the central bank's commitment to low borrowing costs will have a positive effect on the economy over the next year and a third expect to increase investment as a result of forward guidance.
The BoE has announced that it will not consider raising interest rates from their current record-low 0.5 percent before Britain's unemployment falls to 7 percent. It now stands at 7.7 percent.
The bank does not expect the jobless rate to reach that threshold before late 2016. However, investors - encouraged by mounting signs of strength in Britain's economy - are pricing in the first rate rise in the first half of 2015.
Only one fifth of IoD members consider forward guidance a risk to the Bank of England's credibility, the poll found.
IoD members include directors in private, public and voluntary sectors.
(Reporting By Joshua Franklin; editing by Ron Askew) Keywords: BRITAIN ECONOMY/BOE
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