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Policy risk for Carney

BANK of England governor Mark Carney's interest rates policy, which affects the cost of borrowing for consumers, may be buckling under the strength of the UK economy.

The fastest growth since 2010 means unemployment could fall to the 7pc threshold as soon as June, forcing officials to consider raising rates sooner than Carney (above) might like, according to Goldman Sachs.

But modifying policies risks undermining confidence in a programme intended to foster Britain's recovery by keeping borrowing costs low.