Carney and chancellor
And City A.M. understands the influential Treasury Select Committee (TSC) of MPs will use a hearing with Carney next month to ask him about his relationship with Osborne.
Both the Bank of
And the Bank insists the decision on interest rates is solely down to the nine-strong monetary policy committee (MPC), on which Carney is only one member.
"The Bank of
When Carney has previously been asked, he has denied there is any polit-ical pressure placed on him.
The Bank of
Previously, the worry had existed that chancellors would be tempted to cut interests before elections, engineering short term economic booms to give them a lift in the polls, even if it would do harm in the longer-term by encouraging reckless borrowing.
The government is known to be concerned about the political risks posed by an interest rate rise to its re-elect-ion hopes.
Next May's general election campaign is expected to focus on the economy, with the chancellor promoting the recovery, and Labour continuing its complaints about the cost of living.
If interest rates rise, it would push up bills for borrowers and so the Conservatives fear it would improve Labour's prospects.
Writing in today's City A.M.,
"With the date of destiny with the voters soon upon us, brave would be the governor who risked his patron's scorn with a rate hike in advance of 2015's poll," Field writes.
And yesterday TSC member
The current consensus among economists is that interest rates will rise in the first quarter of 2015, a few months before the election.
Some had predicted a rate hike in the final quarter of 2014, but comments by Carney last week pushed back those expectations.
The governor said that even falling unemployment was not enough by itself to make the Bank raise rates, and it would be likely to wait until wage growth showed signs of a recovery.
The Bank of
From October, banks face new limits on the level of loans they can offer to home buyers who borrow more than 4.5 times their income.
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