An interest rate hike in the UK is “moving closer”, the governor of the Bank of England told MPs in comments that have fanned market expectations that policymakers could start to tighten borrowing costs before the end of the year.
Speaking to the Treasury select committee on Tuesday, Mark Carney also expressed misgivings about the euro project, the sustainability of Greece’s debts and the prospects for the embattled country’s economy in the wake of this week’s deal hammered out by leaders in the single currency union.
His comments on interest rates had immediate impact on financial markets where investors are positioning themselves for the world’s big central banks to start tightening policy after years of ultra-low borrowing costs ushered in by the financial crisis.
