News Column

Carney: Interest rate rise is coming nearer

June 13, 2014

Interest rates could rise from their historic low of 0.5% sooner than expected, Bank of England governor Mark Carney has warned.

He said "gradual and limited" increases would be needed as the economic recovery progresses, and that while it would be wrong to start now, this was "coming nearer".

Mr Carney also signalled that the Bank could take "graduate and proportionate actions" within weeks as a separate measure to cool the threat of an overheating housing market - described as the greatest danger to the economy.

Interest rates have been held at 0.5% since 2009 to try to nurse the UK back to health, but the strength of the recovery has heightened speculation about when they will rise, with City experts pencilling in a hike next spring.

However, last night Mr Carney said: "It could happen sooner than markets currently expect."


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Source: Herald, The (Scotland)


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