interest rate

The euro is hovering near a four-month low on the expectation the European Central Bank (ECB) will today take steps to tackle the threat of deflation and lacklustre growth in the eurozone.

The chance of a rate rise this year has moved a step closer after one of the Bank of England's policymakers said a rise in the cost of borrowing should happen "sooner rather than later".

The official UK interest rate could settle at an average of 3% in a few years, the outgoing Deputy Governor of the Bank of England has predicted.

Sterling has spiked further against the dollar and other currencies after strong retail sales and minutes of the latest Monetary Policy Committee meeting stirred up the rate hike debate.

Interest rates set to stay on hold

Bank of England Governor Mark Carney has tried to defuse expectations of an imminent rate hike by saying it would "not be the right tool" to deal with a booming housing market.

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

The governor of the Bank of England, Mark Carney, has warned the 2% target for inflation became a "dangerous distraction" for the UK's policymakers.

M&G's highly-rated bond fund manager Richard Woolnough has said he would raise rates this year if it were up to him - but said such a move could present a buying opportunity.

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.