Carney tells UK rates may rise this year

clock

The governor of the Bank of England has told the UK to prepare for a potential rise in interest rates this year.

In a keynote speech, Mark Carney said a rate rise "could happen sooner than markets currently expect". The consensus among economists was that rates would rise in the first half of next year, or even earlier. Having last year guided people to expect rates to remain at the emergency level of 0.5% until 2016, financial markets had already become more optimistic on growth and shifted their expectations forward, pricing in the first rise in spring 2015. However, the governor's Mansion House speech last night to a City audience hinted the first rise could come in 2014. "There's alrea...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why the lead-up to the Budget may have been worse than the Budget itself

Why the lead-up to the Budget may have been worse than the Budget itself

What Rachel Reeves and Dr Evil have in common

Laith Khalaf
clock 13 November 2024 • 4 min read
Bank of England meets expectations with 25 basis point rate cut to 4.75%

Bank of England meets expectations with 25 basis point rate cut to 4.75%

'Continued progress' on disinflation

Valeria Martinez
clock 07 November 2024 • 2 min read
'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read