BANK of England governor Mark Carney has signalled the regulator may not have to wait for real wages to rise again before interest rates are increased.
The position was set out in an interview given by Carney to The Sunday Times, during which he said there is consensus on the Bank's Monetary Policy Committee that the increase in the benchmark rate will be "limited" and "gradual" when it does occur. While real wages are not expected to return to grow again until the second quarter of next year, interest rates could begin rising from their historic 0.5 per cent low in February.
Carney also highlighted that some British banks may have to bolster their capital positions before new stress tests are tabled by the Bank this autumn.
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Moy Park, the major European poultry producer, is preparing a stock market flotation which would value the company at £1 billion, The Sunday Telegraph reports.
The newspaper says that Marfrig, Moy Park's Brazilian owner, will sell its stake after the float.
It also reports on claims by BT that more pubs and clubs subscribe to its sports channels than BSkyB, thanks to a strategy of undercutting its rival.
Forestry Commission Scotland has been attacked by leaders of the country's forestry and wood-products industries for spreading "pro-independence propaganda", the Sunday Herald reports. The newspaper says a letter sent by Forestry Commission chief executive to stakeholders in the industry provided links to pro-independence publications. William Crawford, chairman of the Royal Scottish Forestry Society, condemnmed the letter as a "blatant piece of pro-independence propaganda".
Various newspapers reported construction giant Carillion will make a last-ditch attempt to seal its merger with Balfour Beatty by offering further shareholder incentives.