Mark Carney hints at end of year UK rate increase

Bank of England governor Mark Carney has raised the possibility that the UK central bank could lift interest rates from their record low before the year is out, his strongest hint yet that the bank is moving towards tighter policy.

He said the decision to raise interest rates will come into sharper focus around the end of this year.

Carney spoke of strong momentum in Britain’s economy and described a slowdown at the start of the year as a blip. But he reiterated interest rates would rise only gradually from their record low of 0.5%, and to lower levels than in the past.