Interest rates will rise in the “relatively near term” the Governor of the Bank of England has told the BBC.
In the clearest indication yet that there could be a rate rise as early as November, Mark Carney suggested that it was time for the bank to “ease its foot off the accelerator”.
The next opportunity for a change in interest rates is the Bank’s monetary policy committee meeting on 2 November.
The Governor also warned that personal lending was becoming “a little frothy”.
“If the economy continues on the track that it’s been on, and all indications are that it is, in the relatively near term we can expect that interest rates will increase,” he told BBC Radio Four’s Today Programme.
“We’re talking about just easing the foot off the accelerator to keep with the speed limit of the economy and so interest rate increases when they come – when and if they come – will be to a limited extent and gradual,” he added.