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Rate rise would put 26% of homeowners 'in trouble'

A little over one quarter of homeowners say they would face serious financial difficulty if interest rates rose, according to an ITV News index carried out by Comres.

50% disagreed with the statement, while 24% said they didn't know.

Interest rates
Interest rates would financially cripple one in four homeowners, the poll found. Credit: PA

One third (35%) of those polled said that if there was an increase in interest rates, it would have little effect on their finances. 49% disagreed with the statement, while 16% didn't know..

ComRes interviewed 2,043 British adults as part of the poll.

Carney: A currency union means a loss of independence

Economics Editor Richard Edgar is in Edinburgh for the Bank of England Governor's speech on how a newly-independent Scotland could still retain sterling:

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Key message from Carney: "a durable, successful currency union requires some ceding of national sovereignty."

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Tough decisions on giving up sovereignty to be made both by Scots ... and rest of UK.

Read Richard's analysis of the Bank of England governor's speech

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Scotland 'would be constrained by currency union'

Mark Carney with Scotland's First Minister Alex Salmond this morning Credit: PA Wire

The Bank of England Governor has warned that a newly-independent Scotland would be forced to hand over some national sovereignty if it wanted to keep the pound.

But Mark Carney appeared to step back from getting involved in the political row oer independence, saying: "Decisions that cede sovereignty and limit autonomy are rightly choices for elected governments and involve considerations beyond mere economics.

"For those considerations, others are better placed to comment."

BoE and Scotland talks to continue until vote

First Minister Alex Salmond has confirmed that talks with the Bank of England governor Mark Carney over a currency union if Scotland wins independence will continue in the run-up to the referendum.

Bank of England governor Mark Carney (left) meeting Scottish First Minister Alex Salmond. Credit: David Cheskin/PA Wire

Mr Salmond held talks with Mr Carney in a private meeting today, but the First Minister said afterwards: "I was delighted to welcome the new Bank of England governor to Edinburgh on his first official visit to Scotland since his appointment.

"We greatly value our strong working relationship with the Bank of England and its commitment to operational independence and impartiality in political debate.

"The discussion was private but I welcome that the governor has confirmed his willingness to continue technical discussions, inaugurated by his predecessor Lord King, between the Scottish Government and the Bank of England in advance of the referendum."

BoE to make forward guidance decision 'next month'

ITV News Economics Editor Richard Edgar is listening to the Bank of England Governor Mark Carney at the World Economic Forum in Davos:

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Mark Carney speaking in Davos says the Bank of England will decide how to "evolve" forward guidance next month. #WEF14

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Carney says "the degree of stimulus will remain exceptional for some time" so low interest rates until the economy reaches "escape velocity"

Bank of England Governor: 'No immediate need to raise interest rates'

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Carney: No immediate need to increase interest rates

Bank of England Governor Mark Carney has said "there is no immediate need to increase interest rates".

His comments come as UK unemployment fell to 7.1% - very close to the 7% figure at which the bank previously said it will consider raising interest rates.

Carney told BBC Newsnight the interest rate rise would be looked at in next month's inflation report but it is important to look at the labour market as a whole, not just one indicator.

Bank of England Governor Mark Carney. Credit: Press Association

Asked if he would be announcing a new threshold rate for unemployment, he said that it was "really about overall conditions in the whole labour market",

He added: "The worst of the crisis is behind us but the financial system is not functioning as well as it could. Uncertainty among households and businesses is still preventing investment."

Umunna: 'Not healthy' for Carney to enter political row

Shadow Business Secretary Chuka Umunna has said the Bank of England Governor should not be involved in big political matters after he said he did not support the view that a cap on banks' market share would improve competition.

Labour leader Ed Miliband is expected to pledge that he will refer high street banks to the competition authorities if his party wins the next general election in 2015, in a speech today.

Chuka Umunna said it was "not a good thing" for Mr Carney to comment on political issues

Mr Umunna said “I think it’s not healthy for us to involve governors of the Bank of England in big political debates and I don’t want to drag him into that", the Times reports.

He also suggested Mark Carney had only expressed his view after being asked a "leading question".

"He was asked a leading question by a Conservative MP who put it to him whether crude market caps on the share of a market that banks have are a good thing or not.

"We’re not proposing a crude or arbitrary market cap, we’re proposing something that would be set by the independent Competition and Markets Authority". he added.

Carney does not support cap on banks' market share

Ed Miliband is expected to pledge that he will refer high street banks to the competition authorities if Labour wins the next general election in 2015, in a speech today.

His stance contrasts with that of Bank of England governor Mark Carney who has said that a cap on banks' market share "would not result in substantial improvement to competition".

Bank of England governor Mark Carney does not agree with breaking up banks to improve competition. Credit: Press Association

Earlier this week, Mr Carney told the Commons Treasury Committee: "Just breaking up an institution doesn't necessarily create or enable a more intensive competitive structure."

ITV News Business Editor: Labour's plan to cap banks' market share is a blunt instrument

Carney concern at lack of new-build properties

The new Bank of England governor, Mark Carney, has expressed his concern about the lack of new homes being built in the UK citing that there is a strong demand among would-be buyers to get on the property ladder.

It is hoped that strategic decisions made now to try to control mortgage lending will avoid the need for severe and drastic policy actions to be taken if there is a boom-bust in the property market.

Mortgage approvals are running at levels not seen since Northern Rock was nationalised in February 2008.

The right way to do policy - to protect against the boom and bust cycles - is to act early in a graduated, proportionate way and that reduces the probability of having to act in a bigger way later.

– The new Bank of England governor Mark Carney speaking in an interview with the Guardian
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