Bank of England Governor Mark Carney said on Thursday the decision to raise interest rates from record lows will come into sharper focus around the end of this year, his strongest hint yet about the timing of the British central bank’s next move.
Carney spoke of strong momentum in Britain’s economy and described a slowdown at the start of the year as merely a blip.
But he reiterated that interest rates would rise only gradually from their record low of 0.5 percent, and to lower levels than in the past.
Carney’s speech puts the British central bank on track to follow the U.S. Federal Reserve by raising interest rates in the near future, after more than six years at rock-bottom levels amid the fallout of the global financial crisis.
“In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year,” Carney said in a speech delivered at Lincoln Cathedral in east England.