The core theme of the announcement on interest-rate forward guidance by Bank of England governor Mark Carney was heavily trailed and largely expected: namely that ultra-low interest rates will continue for some time, with a US-style link to unemployment rates as the threshold for contemplating rate rises.

Confidence in the recovery is growing and should gain a further boost from the guidance that rates could be kept on hold possibly until the end of 2016.

But the real focus for markets has been the various caveats that could override the guidance.

These are based on forecast inflation for the next 12 to 18 months being 0.5% or more ahead of the Bank of England's official 2% target; medium term inflation expectations being no longer sufficiently anchored; or the policy threatening financial stability. This has left markets somewhat underwhelmed, after expectations in the new governor had been running so high.

While the parallels with US policy have been widely noted, there is an important difference.

The US recovery has been underpinned by four strands: quantitative easing, conventional monetary easing (low interest rates), fiscal forbearance and a recapitalisation of the banking sector.

The UK has only really done the first two, so it remains to be seen whether that proves sufficient. Despite the flurry of more encouraging economic data, this could yet prove to be a blip.

Clearly uncertainties remain, notwithstanding the central purpose of forward guidance.

As we approach announcements on employment and inflation data, this could actually lead to renewed volatility, especially in parts of the UK equity market, such as the more domestically-skewed mid-cap space where valuations suggest a lot of optimism is priced in.

Ultimately there are bigger factors that will drive equity markets, which in the near term include quantifying the impact of slowing Chinese growth on the global economy and future moves by the US Federal Reserve.

Notwithstanding this, the prospect of low rates continuing for some time yet - probably at least until the Funding for Lending scheme ends in 2015 - should bring cheers to borrowers and give a further leg to the rally in property prices.

That will undoubtedly make the public feel good, providing a fillip to the recovery, but let's not forget that real earnings are still below pre-crisis levels and the gap between average earnings and average property prices is already stretched by historic standards. This could be problematic when rates ultimately rise, which they will.

The continuation of ultra-low interest rates also means the pain of the last four and a half years for cash savers is set to continue.

Low interest rates coupled with persistently above-target inflation have conspired to erode the real value of cash savings.

Yet despite this, the public have continued to pour money into cash ISAs. Some 14.6 million UK adults invested in ISAs last year but 80% of those accounts, representing more than £40 billion of assets, went into cash.

Now of course it makes sense to hold some cash for short-term needs and emergencies but as a long-term place to park your wealth, it just doesn't make sense.

With low rates potentially set to continue for years yet, some of this cash will need to get flushed out into riskier assets that offer the potential for inflation-beating returns, especially those offering a yield.

This means equities, higher yielding bonds, and commercial property. But savers should make the shift progressively, as markets could be volatile ahead.

Jason Hollands is managing director of financial advisers BestInvest