UK recovery ‘has taken hold’

<p>Bank of England Governor Mark Carney says that the UK recovery has taken hold.</p>

Governor of the Bank of England Mark Carney says the economic recovery in the UK has finally "taken hold" following the latest quarterly inflation report.

The central bank's forecast for economic growth was raised from 1.4 per cent, put forward in the previous three months, to 1.6 per cent.

Unemployment in the country fell from 7.8 per cent to 7.6 per cent. Should it reach its seven per cent threshold, the bank intends to raise interest rates.

Predictions as to when this might be vary from next year to the second half of 2016, with the latter being suggested by the bank during August. It now believes that it will reach the threshold during the third quarter of 2015.

During 2014, the bank expects growth to reach 2.8 per cent, an increase from its previous prediction of 2.5 per cent and a return to the levels seen prior to the financial crisis.

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