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Carney: There is a 'new normal' for interest rates

27 June 2014 Last updated at 10:48 BST

Interest rates in the UK are likely to rise to a "new normal" of about 2.5% when rates start to increase, Mark Carney has said.

The Bank of England governor told the Today programme's John Humphrys that a return to "normal" interest rates of 5% was unlikely in the medium term.

Broadcast on BBC Radio 4's Today programme on Friday 27 June.