( CNN ) -- The Bank of England 's pessimistic forecasts on unemployment will lure households and businesses into amassing more debt , say economists , as interest rates remain at a record low . Last week , newly-minted Bank of England Governor Mark Carney said rates would remain on hold at 0.5 % -- subject to `` knockout '' conditions on inflation -- until unemployment fell below 7 % , a target the bank says wo n't be met for three years . Data released today showed that the UK jobless level remained unchanged at 7.8 % in the three months to June , falling by just 4,000 jobs . George Buckley , chief UK economist at Deutsche Bank , told CNN that the central bank 's measures were too complicated and could `` backfire . '' Read more : British housing boom -- or bubble ? Buckley argues that `` people may be acting right now under a false sense of security . '' If Britain 's economy improves and unemployment falls , the Bank of England may increase rates sooner than expected , he said . In March , UK finance minister George Osborne gave the Bank of England new powers to focus on growth , including unemployment , as well as its inflation target . Read more : Bank of England signals low rates for years . Buckley said : `` This is exactly the reason that Osborne decided to hire Carney in the first place . He wanted to find somebody who did n't need that much pressure to consider more stimulus . '' The Bank of England has already rolled out a Â£375 billion bond-buying program and an Â£80 billion scheme to get the banks lending in an effort to kickstart economic growth . Read more : Central banks in Europe keep rates on hold . Buckley added : `` It would be politically expedient if they did manage to bring forward growth and achieve a strong economy in advance of the next election [ in 2015 ] . '' Asked whether the Bank of England was becoming too political by interfering in unemployment , Stephen Pope , managing director of Spotlight Ideas , a global markets consultancy , told CNN : `` I think in the more sophisticated economies the edges between what is the responsibility of the treasury and the central bank can become somewhat fuzzy . '' He added : `` I think it 's appropriate that a sophisticated central bank has as many levels or gears in the gear box to utilize and work with as possible ... and the fact that [ Carney ] has put these three knockout criteria in there means that he 's not allowing them to be manoeuvred into a corner . '' The Bank of England outlined two `` knock out '' exceptions that could mean a rate rise regardless of unemployment . First , if inflation , 18-24 months ahead , were to rise 0.5 % above the current target and the second if medium-term inflation expectations remain `` well anchored . '' Inflation is currently at 2.8 % , well above the bank 's 2 % target . In an interview with ITV on August 7 , Carney said that the bank is `` not making any promise '' on a time frame for raising interest rates . He said : `` We 'd all be pleased if we could lower the rate of unemployment by creating more [ jobs ] sooner rather than later , and if that happens then ... the Bank of England will have to take a judgement at that point in time . '' Economic recovery . The UK economy is beginning to see signs of recovery as output increased by 0.6 % in the second quarter of 2013 , double the rate of expansion seen in the first three months of the year . Despite a more positive economic outlook , Nick Beecroft , senior analyst at Saxo Capital Markets , told CNN that the Bank of England 's jobs forecast was still too pessimistic , echoing Buckley 's comments that borrowing could spiral under inaccurate guidance . Beecroft said : `` They 're pretty much used to embarrassing forecasts by now at the Bank of England ... I think we will reach 7 % [ unemployment ] probably toward the end of next year . '' He added : `` The nightmare scenario is that we reach one of the knockout inflation triggers whilst unemployment has n't fallen . '' Carney should have waited to see if the UK economy could continue its positive growth streak , according to Beecroft . He said : `` He 's been a little precipitate in that and runs the risk of damaging his credibility as well . '' Carney 's style . Canadian Carney -- the Bank of England 's first overseas governor in its 319-year history -- took a similar policy stance in his stint as governor of the Bank of Canada . The 48-year-old kept rates on ice for a large part of his tenure , leaving the benchmark rate at 1 % from September 2010 through to his departure in the spring of 2013 . Last week was Carney 's first press conference as Bank of England governor and Pope said the man known as the `` rock star banker '' was right to take decisive action at his first outing . `` This was his first real chance to be his own man ... I think had he said nothing that would have been more damaging , '' he added .
UK unemployment rate remains at 7.8 % , fell by just two jobs in the three months to June . Newly - appointed Bank of England Governor Mark Carney said rates will remain on hold at 0.5 % . In March , UK finance minister George Osborne gave the Bank of England new powers to focus on UK growth . The Bank of England has already carried out a Â£375 billion bond - buying program , known as quantitative easing .