LONDON (Reuters) - Bank of England Governor Mark Carney said on Thursday that interest rates are likely to rise by the end of this year, speaking shortly after the central bank kept borrowing costs on hold in May.
“It’s likely over the course of the next year rates will go up, likely by the end of the year... that’s the most likely thing to happen,” Mr Carney said in an interview with the BBC.
“If the economy slows... then we will adjust policy,” he said.
Earlier on Thursday the BoE left rates steady and said weak growth during a snowy start to 2018 was likely to be temporary, but it wanted to be sure the economy was picking up in coming months before raising borrowing costs.
Sterling fell heavily after the BoE announcement but trimmed its losses after Carney’s comments to the BBC.
Reporting by Andy Bruce; Editing by William Schomberg