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Bank raises growth forecast

The Bank of England upgraded its growth forecast for 2013 from 1.4% to 1.6% today and announced "the recovery has finally taken hold". The moves comes after government figures showed unemployment had fallen by 48,000.

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Carney: Pay rises should not be expected until mid-2014

The governor of the Bank of England has admitted that people should not expect their wages to rise in real terms until mid-2014 at the earliest despite the growing economy.

Mark Carney told Channel 4 News: "I think some - not everybody across the country is feeling this, without question".

"There's still a million more people out of work than were in work prior to the crisis... but what is happening is 60,000 jobs per month, new jobs, are being created, most of those in the private sector, most of those full-time. And that's real work, real people".

Bank of England governor Mark Carney on Channel 4 News. Credit: Channel 4 News

Mr Carney acknowledged that real wages "are not picking up, they haven't been for a number of years".

Asked if he would be prepared to raise interest rates before the General Election, Mr Carney replied, "Well, absolutely."

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