Bank of England

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.

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 the UK's booming housing market.

Bank of England governor Mark Carney has said rates could be as high as 3% over the medium term to 2017, endorsing comments made by colleague Charles Bean earlier this week.

Monetary Policy Committee members predict any rise in the Bank base rate, currently at 0.5%, which occurs over the next two to three years will be gradual.

The UK inflation rate dropped to 1.9% in January, marking the first time it has fallen below the Bank of England's target of 2% since November 2009.

Britain must see a business recovery before interest rates can begin to rise, according to Mark Carney, the Governor of the Bank of England.

The Bank of England has today said it will not hike rates "for some time to come" - with the base rate potentially at 2% by 2017 - as governor Mark Carney begins to alter his forward guidance policy.

Mutual's chief economist tells recent borrowers to prepare

The Bank of England has again moved to temper expectations of an early rate rise, despite the UK unemployment rate dropping to close to the crucial 7% mark this morning.

The Bank of England's Monetary Policy Committee (MPC) should hold off on raising interest rates even though its stated threshold for doing so - a fall in the unemployment rate to 7% - is in sight, according to a report.