Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Carney: 'rates could rise sooner than expected'

Carney: 'rates could rise sooner than expected'

Mark Carney has warned interest rates could rise 'sooner than expected'.

In his first Mansion House speech since becoming governor of the Bank of England, Carney (pictured) acknowledged there was 'already great speculation about the exact timing of the first rate hike' and that the decision was 'becoming more balanced'.

Interest rates have been rooted at a historic low of 0.5% since 2009 and previous Bank commander Mervyn King used everything in his power to battle the financial crisis.

In their forecasts economists had penciled in a rise at some point in the first half of next year on the back of the economic recovery and rising house prices.

Carney stressed there was 'no pre-set course' on when to raise rates as he highlighted that there was more spare capacity in the economy that would have to be used up first.

He also indicated rate rises would be measured. 'We expect that eventual increases in Bank rate will be gradual and limited.'

However, he said raising rates right now would be a mistake, saying a move would only be a 'last line of defence...fortunately, we are not up the proverbial creek without a paddle.'

Leave a comment
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter