Enter multiple symbols separated by commas

Mark Carney won't be 'railroaded' on rates: BAE's Carr

The Bank of England will not be "railroaded" into lifting interest rates early, said Roger Carr, the chairman of BAE Systems and a member of the central bank's Court of Directors.

"The judgment as to when to apply the next interest rate is the key call," Carr told CNBC at the World Economic Forum in Davos, Switzerland on Wednesday. Economic and political policymakers, as well as corporate executives, attend the annual meeting.

"I think the approach he (Bank of England Chief Mark Carney) is going to take is to watch and wait and act correctly, rather get railroaded into a quick decision."

The Bank of England has held rates at record lows of 0.5 percent since March 2009.

Governor Mark Carney has said he will not consider raising rates until U.K. unemployment falls to 7 percent, which he originally forecast would not happen before the end of 2016.

However, data in the last few months has suggested the U.K. economic recovery is accelerating.

In particular, official statistics showed on Wednesday that unemployment fell to 7.1 percent in the three months to November — a whisker away from the central bank's targeted level.

(Read more: UK unemployment lowest since early 2009)

"The U.K. is having a very strong run," said Carr. "But these things have to be cared for and husbanded and if we lean back too much, the risk is, these things will slide."

The Bank of England's Court of Directors is responsible for managing its affairs outside of formulating monetary policy.

—By CNBC's Katy Barnato. Follow her on Twitter: @KatyBarnato

Davos: Top interviews and more


Latest Special Reports

  • CNBC's ninth annual study measures all 50 states on more than 60 different metrics.

  • Waitress tablet

    Trailblazers leveraging the power of technology and innovation to grow their business—and disrupt the competition.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.

World Economy

  • Workers during olive harvest one step before oil mill in Heraklion, Greece.

    Greek's ag sector was already facing a challenging 2015, but now there's fear the uncertainty could disrupt the food and wine trade.

  • In a world first, the oil-rich Emirates state of Dubai is planning to construct an entire office complex using 3-D printing.

  • Greek Prime Minister Alexis Tsipras leaves the European Council headquarters after a summit in Brussels.

    Greece should vote "no" on the European deal to extend its bailout—the best solution is for creditors to take a haircut, says Peter Morici.