For the first time in more than a decade, the Bank of England is widely expected to raise interest rates later on Thursday.
The Bank estimates that almost two million mortgage holders have not experienced an interest rate rise since taking out a mortgage.
The official bank rate has been lifted from 0.25% to 0.5% , the first increase since July 2007.
Wage growth is stagnating , household budgets are tight and Brexit negotiations are casting a shadow over economic growth prospects.
Mr Carney told the BBC that the Bank expected the UK economy to grow at about 1.7% for the next few years , which he said would require “about two more interest rate increases over the next three years”.
Britain’s economy has slowed since the 2016 Brexit vote but it has fared better than many investors expected at the time of the referendum , thanks largely to the much stronger global rebound in countries such as the United States , Germany and other key trading partners.
Mark Carney , BoE governor , was clear the bank’s main message was that the UK economy still required further tightening of monetary policy.
However , the MPC thinks that Jo, unless it acts now , inflation will instead be pushed up by rising wages.
It projects average wages will rise from just over 2% now to 3% in a year’s time , before getting to 3.4% in the “medium term”.
This would mean workers will finally enjoy a real terms increase in pay , after many months in which wages have lagged behind inflation.
The MPC thinks CPI inflation will slow from 3% now to 2.4% by the end 2018, then 2.1% in late 2020.