The UK base rate could start to rise at the turn of the year, according to the Bank of England's governor.
In a speech at Lincoln Cathedral, Mark Carney indicated that the coming three years could see a gradual upward movement in the base rate, which currently sits at 0.5 per cent.
However, he added that when rates do go up, they are likely to rise slowly and only amount to half their historic average.
The timing and size of rate rises could yet be impacted by financial shocks, Mr Carney said.
His remarks follow suggestions he made earlier this week, when he told the Treasury Select Committee that the UK is moving nearer to a rate increase.
The base rate has been held at its record low since March 2009, in an effort to revive the economy.
But an economic recovery is now well under way in the UK.
Copyright Press Association 2015