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Interest Rates Could Rise Soon: Bank Of England

Monday 9th June 2014

A member of the Bank of England's monetary policy committee has told LBC the time for a rise in interest rates is "approaching".

Ian McCafferty, who sits on the Bank's Monetary Policy Committee, joined Iain Dale live in the LBC studio to answer your questions.

The bank's base rate of interest has been at a record low of 0.5 per cent since 2009.

Ian McCafferty told Iain a rise depends "critically" on how the economy performs this summer and autumn.

"We do think that there is scope for the economy to grow a little further before we have to start the gradual process of normalisation," he told Iain.

"That's going to depend on how fast growth is in the second and third and fourth quarters as to exactly how fast we are absorbing slack in the economy and therefore when it becomes appropriate to rise."

Watch back in full: