UK borrowers should expect interest rates to return to their pre-recession levels of around 5 percent within a decade, according to the outgoing Bank of England deputy governor for monetary policy.
Sir Charlie Bean who leaves his job tomorrow, said market expectations that the first increase in interest rates would come at the turn of the year were "reasonable".
He told Sky News: "The market has rates going up to 2.5% over next three years. That seems like a broadly sensible judgment."
Sir Charlie admitted that in the run-up to the crash, economists were "not sufficiently cognisant of the risks building up in the financial system" but insisted the economy is far more resilient than when he arrived at the central bank in 2000.
More top news
Nicola Sturgeon will hold talks with European Parliament president Martin Schulz in Brussels today.
IKEA is recalling almost 36 million chests and dressers in the US and Canada after the deaths of three children.
Toyota is recalling 1.43 million cars for an airbag inflator defect.