Addressing an actuarial conference in Wales, Carney said that the Uk could now handle higher interest rates thanks to the strength of the economic recovery.

He said: “With many of the conditions for the economy to normalise now met, the point at which interest rates begin to normalise is getting closer. While there is always uncertainty about the future, you can expect interest rates to begin to increase. However, Carney repeated his oft-used reassurance that interest rate rises would be ‘gradual’ and rates would remain ‘lower than in the past’.

Carney said:”We have no pre-set course…the timing will depend on the data.”