‘UK rate rise will be seen in first quarter next year’

It will be early 2016 before the Bank of England raises interest rates from a record low, economists who largely brushed off hawkish talk last week from officials suggesting a rate rise might come earlier, have claimed.

The British economy’s strong momentum despite extremely low inflation now meant the decision on when to raise rates from 0.5% would come into sharper focus around the end of this year, said governor Mark Carney on Thursday.

Some interpreted that to mean that rates might rise by the end of the year as the remarks followed news of higher pay growth and a speech from outgoing monetary policy committee member David Miles, who said rates should rise soon.