Carney hints at spring 2015 rate rise

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Bank of England governor Mark Carney has hinted interest rates could rise in the spring of next year as the UK economy continues to recover from one of the worst downturns it has ever faced.

The governor told an audience at the Trades Union Conference in Liverpool if the surprising strength of the labour market continues, and inflation does not change course, rates may start to climb in line with market expectations. Carney said: "Our latest forecasts show that, if interest rates were to follow the path expected by markets - that is, beginning to increase by the spring and thereafter rising very gradually - inflation would settle at around 2% by the end of the forecast and a further 1.2 million jobs would have been created. "In other words, we would achieve our mandate....

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