Bank of England chief Mark Carney has said Britons should prepare for an interest rate increase in 2016, following the Bank's decision to once again keep rates at record lows yesterday.
In an interview with Bloomberg, Carney said an expectation of rates rising next year would be "reasonably prudent" given the recent progress of the UK economy.
His comments came just hours after the Monetary Policy Committee voted 8-1 in favour of keeping UK interest rates at a record low of 0.5% amid a dovish tone in the November Inflation Report.
"Would I rather have the majority of the British people thinking that rates are likely to go up in the next year, which is the case today? Yes I would, because that is reasonably prudent behaviour, given the progress this economy is making," he said.
"At some point, rates are going to move. It is not today, unfortunately."
Carney: Rate rises 'possibility not a certainty'
In the interview, he also warned the UK that it must remain an attractive place for foreign investment, ahead of the country's upcoming referendum on its membership of the European Union.
"There is a general point from a macroeconomic perspective, which is that the UK runs a very large current-account deficit, that is natural given this economy is growing more rapidly than other economies. That deficit needs to be financed, it is financed with very solid, largely long-term investment flows," he said.
"It is important that this economy continues to be an attractive destination for foreign capital."
Sterling fell sharply following the BoE's decision to hold rates as a result of global growth concerns.
