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'UK Interest Rate Hike in Spring 2015' Warns BoE Policymaker IBTimes TV

A senior member of the Bank of England has revealed that the central bank is likely to hike interest rates in the Spring of 2015 but the general election could put a pause on changes.

According to Monetary Policy Committee member Martin Weale, while the BoE has stressed that it won't raise rates any time soon, he said the second quarter of next year was the most likely time for boost.

"I think it is very helpful that we try and explain the most likely path for interest rates is that the first rise will come perhaps in the spring of next year, and then the path is likely to be relatively gradual," Weale added.

However, despite monetary policy decision being independent from the government, since 1997, Weale explicitly addressed whether a rate rise would be delayed during the general elections.

"During an election campaign it would obviously be difficult (to change rates) but the election campaign will last for three weeks," said Weale.

Rate Rise Conditions

Earlier this week, the BoE revealed that it will analyse income and wages before deciding to hike up interest rates, despite previously saying that unemployment falling to a 7% threshold would trigger an increase.

According to a TV interview with Mark Carney, the BoE governor said it would only hike rates if data showed that the economy was operating near full capacity.

"The path of monetary policy, the path of interest rates is going to be calibrated very carefully to ensure that only when we see sustainable growth in jobs, in incomes and in spending, will we make adjustments," said Carney.

"We can responsibly take our time and only adjust interest rates once more slack has been cut."

Earlier this month, Carney revealed that the BoE would not hike rates in the near future, despite UK employment falling by its fastest pace since 2007.