He said that "some removal of monetary stimulus is likely to become necessary" if growth reduces spare capacity in the economy, and that the bank's rate-setting committee would debate the issue "in the coming months". Absent a material change in the outlook, and consistent with its stated policy for a standard risk environment and of moving gradually, the FPC expects to increase the rate to 1% at its November meeting. "Nevertheless, there are pockets of risk that warrant extra vigilance", said Carney. While any increase in interest rates will be small and mortgage rates would still be at historically very low levels, the fact that it would be the first rise in interest rates since mid-2007 could have a significant effect on housing market psychology.
It says the market - which includes credit card debt, personal loans and motor finance - grew by 10.3% in the year to April, much higher than general wage growth.
In its Financial Stability Report released yesterday the BoE noted that dealership finance had soared by 20% a year since 2012 and the total stock of dealer finance had increased by more than £30bn over that period.
The pound jumped by well over a cent after Carney's comments to hit $1.2971, its strongest since June 9, the day of the results of Britain's parliamentary election. Exposures to PCP lending may be particularly sensitive to market conditions.
This "measured approach is likely to decrease the risk that banks adjust by tightening credit conditions, thereby minimising the cost to the economy of making the banking system more resilient", the BOE said.
The bank shouldn't "overburden" monetary policy with rules that could restrict the kind of bonds that are included in a quantitative easing program to bolster the economy, Carney said in an interview with Bloomberg television on Thursday.
Ronaldo sets Portugal on way to Confederations Cup semis
Cristiano Ronaldo , with rumours abound of him being rested ahead of the game, started and was Portugal's protagonist once more. Portugal's Cristiano Ronaldo celebrates after scoring a penalty during the 2017 Confederations Cup match against New Zealand.
"This speculation could further support the pound if economic growth remains stable, inflation rises further, and business investment and wage growth pick up".
Carney said the FPC's action did not in itself imply that monetary policy was also about to tighten.
Howard Archer, chief economic advisor to forecasters the EY ITEM Club, said: "This was the 13th successive month of double-digit year-on-year consumer credit growth, and occurred despite weakened retail sales during the month".
Sterling strengthened to $1.2995 in early European trade, briefly rising as high as $1.3007 after Haldane told the BBC the bank needed to look seriously at raising rates.
Three out of eight members voted for a rate hike in the most recent rate decision.
On Brexit, the BOE said it will oversee banks' contingency planning for a "range of possible outcomes" of the talks on the United Kingdom withdrawal from the European Union.