Bank of England of Gov. Mark Carney is suggesting that interest rates could rise from their record low of 0.5 percent as soon as the end of the year as Britain's economic recovery continues to gather strength.

In a speech Thursday to mark the 800th anniversary of the Magna Carta, Carney said once rate increases begin, they will probably rise gradually to about half the historic average, or about 2 percent. Carney said "the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year. "

Carney added several factors may affect the timing and scale of the rate increases. Those include shocks to the economy and the potential impact on household borrowing in the "heavily-indebted post-crisis economy."