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Britain's economy 'halfway' to recovery: bank chief

Britain's economy is "more than halfway" down the path to full recovery, but any interest rate rises will be "limited" and "gradual", Bank of England (BoE) boss Mark Carney said on Sunday (Aug 17).

LONDON: Britain's economy is "more than halfway" down the path to full recovery, but any interest rate rises will be "limited" and "gradual", Bank of England (BoE) boss Mark Carney said on Sunday (Aug 17).

In an interview with The Sunday Times, Carney declared that the economy was now undergoing genuine expansion following the economic crisis of 2008.

"Wherever the finish line was in the depths of the crisis, we are much more than halfway towards that finish line now," he said.

"The expansion is proceeding, momentum is more assured; the very fact we have had consistent quarters of growth in line with, or slightly better than, our forecasts shows that," added the Canadian.

Carney sought to reassure indebted householders that interest rates were not set to rise sharply any time soon.

"There are big pockets of households who will be very sensitive to interest rate increases when they begin, so it makes sense to be gradual," he said.

Britain's economy grew by 0.8 per cent in the second quarter of 2014 compared with output in the first three months of the year, official data showed on Friday.

Gross domestic product had also expanded by 0.8 per cent during the first quarter of the year, the Office for National Statistics said in a statement, confirming initial estimates provided last month.