UK Interest Rates to Rise in 2015

Martin Weale, a member of the Bank of England’s rate-setting Monetary Policy Committee, said UK interest rates are likely to rise for the first time since the financial crisis in the spring of 2015.

However, he said rates could rise sooner if wages rise faster than expected. Interest rates have been held at a record low of 0.5% since 2008.

These comments follow last week’s bank of England inflation report, when Mark Carney said interest rates were unlikely to rise even if the unemployment rate fell below 7%, as is now expected in the coming months.

Mr Carney had previously suggested the 7% unemployment rate as a threshold for considering an interest rates rise.

Although unemployment has fallen faster than many analysts expected in recent months, wages have not risen as quickly.

Mr Weale said he could not rule out an earlier increase if average earnings increase quicker than expected.