MPC

Bank of England Governor Mark Carney has said the 'new normal' for interest rates in the UK will be around 2.5%, a level he predicted they may reach by 2017.

The absence of any relationship between the monetary base and inflation means no one has any real idea of where the economy is heading. So how can the authorities control inflation and sustain above trend growth? John Clarke, chief investment officer...

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".

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.

When will UK interest rates peak?

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.

Given the nature of the financial crisis and the depth of the accompanying recession, the recovery process was always going to be a hard grind.

SPECIAL 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.

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