Bank of England says economy is on the up

churchillLower unemployment figures and a drop in inflation have led the Governor of the Bank of England to saw the UK economy will growth this year and next year.

Interest rates won’t be increased until unemployment falls to seven percent or below, Mark Carney said.

Growth in the UK is now likely to be 1.6 percent, slightly up from the 1.4 percent forecast. And Carney said annual growth could reach 2.8 percent, rather than the 2.5 percent the Bank predicted earlier this year.

In the quarterly inflation report, the Bank said that “recovery has finally taken hold. The economy is growing robustly.. thawing credit conditions start to unlock pent-up demand.”

Carney said that although house prices are showing signs of inflation, there did not yet seem to be evidence for a British property bubble.