Mark Carney says time for UK rate rise is closer

Bank of England governor Mark Carney said yesterday that the time for a first UK interest rate hike since the financial crisis was getting closer as economic recovery gathers pace.

Speaking to British lawmakers for the first time since May’s national election, Carney said households should start to prepare for higher borrowing costs, though the central bank would only raise rates slowly.

“The point at which interest rates may begin to rise is moving closer with the performance of the economy, consistent growth above trend, a firming in domestic costs, counter-balanced somewhat by disinflation imported from abroad,” he told a parliamentary committee.