The Bank of England said on Wednesday British interest rates could start to rise from record lows in little more than a year as a rapid recovery brings the economy closer to operating at full steam.

Governor Mark Carney – forced to ditch a previous version of rates guidance after it was overtaken by a sharp fall in unemployment – also announced the Bank would now follow a much broader range of measures of slack in the economy in making rates decisions.

The BoE slashed interest rates to 0.5 percent at the height of the financial crisis in 2009. The economy bounced back strongly last year but remains smaller than before the crisis and Carney stressed any increase in rates would be gradual.

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