Interest rate rise set for new year, warns Bank of England governor

Mark Carney says first increase since height of financial crisis is becoming increasingly necessary as economic growth strengthens

Britain has been put on alert to expect its first interest rate rise since the global financial crash at around the turn of the year as the governor of the Bank of England, Mark Carney, warned that the long period of 0.5% borrowing costs was coming to an end.

Carney told businesses and consumers that Threadneedle Street would have to respond to the economy's stronger growth by announcing the first tightening of policy since rates were increased to 5.75% in July 2007 - the month before the US subprime mortgage crisis erupted.

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