Bank of England governor Mark Carney says a rise in UK interest rates is “moving closer”.
Addressing the Treasury select committee today, Carney said “the point at which interest rates may begin to rise is moving closer, given the performance of the economy”.
He later added: “The point at which interest rates will begin to adjust up is moving closer on the policy horizon, but we see no scenarios where they move to historic levels.”
The latest inflation figures, out today, saw UK inflation drop to 0 per cent in June from 0.1 per cent in May. However, experts said the fall is good news for consumer spending as employment and earnings rise.
Many expect the UK to follow the US in any rate rise, the latter of which is expected by many to come before the end of this year.
The meeting, which can be watched live here, will later see the TSC grill Carney and others on its latest Financial Stability Report, which looks at the health of the UK economy.