Bank of England governor Mark Carney says the UK recovery has "taken hold" and unemployment will fall sooner than it had forecast.
The comments came in the Bank's latest quarterly inflation report, which raised the forecast for UK economic growth this year and next.
Mr Carney has said the Bank will not consider raising interest rates until the jobless rate falls to 7% or below.
On Wednesday, the UK unemployment rate was reported at 7.6%, down from 7.8%.
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