Mark Carney: ‘New normal’ for UK interest rates is 2.5%

Bank of England governor Mark Carney has suggested the “new normal” for interest rates is likely to be about 2.5% when rates start to increase.

“That’s not the big picture, the big picture is where interest rates go in the medium term, because if I am taking out a mortgage… and if I am thinking of investing in a new plant, if I’m thinking about taking on new people, that’s what I care about.”