MPC

Mark Carney said UK interest rates could rise before next May's general election if there are continued sustainable improvements in the economy.

A leading Bank of England policymaker has said the base rate is likely to rise in "spring 2015" in unusually revealing comments made this afternoon.

It is "not unreasonable" for investors to anticipate a 2% base rate as early as 2016, but increasing rates is still considered a last resort to tame the housing market, according to Bank of England policymaker David Miles.

Sterling has climbed against a basket of currencies including the dollar this morning after the Bank of England altered its forward guidance policy and revealed GDP is expected to overshoot expectations.

Three former members of the Bank of England's rate-setting Monetary Policy Committee (MPC) have suggested interest rates could rise sooner than expected.

FIVE THINGS

The Bank of England's Monetary Policy Committee (MPC) should hold off on raising interest rates even though its stated threshold for doing so - a fall in the unemployment rate to 7% - is in sight, according to a report.

Bank of England Governor Mark Carney has promised to keep interest rates lower for longer, ahead of the release of UK GDP growth data for the third quarter.

The recovery of the British economy is now "sustainable and self-confirming", according to David Miles, an external member of the Monetary Policy Committee.

SOAPBOX