Carney tells borrowers to brace for interest rate rise

Households will have longer to sort out their finances before an increase in borrowing costs after the Bank of England yesterday decided to hold interest rates. However, borrowers were warned to prepare for higher rates as the Bank dismissed recent economic weakness as a weather-related blip. It endorsed financial market predictions that there will be three quarter-point rate rises over the next three years, taking rates to 1.25% in early 2021, by forecasting that inflation would hit its 2% target under those assumptions. “For households and businesses, interest rates are likely to go up to a limited extent and a gradual pace and they should plan accordingly,” Mark Carney, the Bank’s governor, said. Click here for the full Times article (£) Click here for the full Telegraph article Click here for the full Guardian article Click here for the full FT article