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| Mark Carney: UK rates to remain low 'for some time' | Mark Carney: UK rates to remain low 'for some time' |
| (34 minutes later) | |
| Bank of England governor Mark Carney has said that UK interest rates are likely to remain low "for some time". | Bank of England governor Mark Carney has said that UK interest rates are likely to remain low "for some time". |
| His comments came as he spoke to MPs on the Treasury Committee. | His comments came as he spoke to MPs on the Treasury Committee. |
| UK rates have been held at 0.5% since March 2009. Most economists are not expecting the Bank to raise rates until mid-2016 at the earliest. | UK rates have been held at 0.5% since March 2009. Most economists are not expecting the Bank to raise rates until mid-2016 at the earliest. |
| Mr Carney said that "even with limited and gradual rate increases it still will be a relatively low interest rate environment". | Mr Carney said that "even with limited and gradual rate increases it still will be a relatively low interest rate environment". |
| He added: "The question in my mind is when the appropriate time for interests to increase and that is strongly consistent with the strength of the domestic economy." | He added: "The question in my mind is when the appropriate time for interests to increase and that is strongly consistent with the strength of the domestic economy." |
| Mr Carney also said that he did not see any need for negative interest rates. | Mr Carney also said that he did not see any need for negative interest rates. |
| Meanwhile, he said the Bank was monitoring groups of households to find out what impact any rate hike would have. | |
| Kirstin Forbes, an external member of the Bank of England's Monetary Policy Committee, who was also giving evidence at the same hearing, said that the next interest rate move would be upwards. | |
| "Given the state of the UK economy, a solid recovery, I still believe certainly the next move in interest rates will be up, we will not require loosening," she said. | "Given the state of the UK economy, a solid recovery, I still believe certainly the next move in interest rates will be up, we will not require loosening," she said. |
| After Mr Carney reiterated the low interest rate environment was likely to remain, UK sterling fell by 0.03% against the US dollar, to $1.5120, and by 0.15% against the euro, to 1.4198 euros. |