Mark Carney Tells Mansion House: Interest Rates Could Go Up Sooner

Mark Carney, Governor of the Bank of England, speaks at the
'Lord Mayor's Dinner to the Bankers and Merchants of the City of London'

THE DAILY TELEGRAPH: In his Mansion House speech, Mark Carney, Governor of the Bank of England, gave his strongest indication yet that the first rise since the wake of the financial crash was imminent

Interest rates may rise sooner than expected, the Governor of the Bank of England warned.

They could begin to do so later this year, a move that will provide some long-awaited relief to savers but plunge many borrowers into difficulty.

In a speech on Thursday evening, Mark Carney gave his strongest indication yet that the first rise since the wake of the financial crash was imminent, as concern grows over a bubble in house prices. The housing market was now “the greatest risk to the domestic economy”, Mr Carney told an audience of senior bankers.

Minutes earlier, George Osborne, the Chancellor, had also announced new powers for the Bank to restrict mortgage lending in his annual Mansion House speech.

The statements from the two most powerful figures in British economic policy come as more experts are warning that the recovering economy risks overheating. » | James Kirkup, Political Editor | Thursday, June 12, 2014