Bank of England Governor Mark Carney signals bank could start lifting interest rates in spring

Economic IndicatorsAssociated Press

Bank of England Governor Mark Carney has signaled that Britain's interest rates could start rising early next year.

In a speech delivered Tuesday, Carney said the bank would meet its inflation target if it started lifting borrowing rates gradually in the spring, as investors currently expect.

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He said: "In other words, we would achieve our mandate." The comments are among the clearest indications yet on when the Bank of England is likely to act.

Currently, its nine-member monetary policy committee is split on the issue. Two voted last month for a rate increase, but the rest want to see a stronger rise in wages and jobs. Britain's economy is recovering better than most European countries, but pay increases have been slow.