UK interest rates will rise to 0.75% from 0.5% in the first three months of 2015 as growth picks up, according to a prediction from the CBI.
That has been brought forward from an earlier prediction of a rate rise in the July to September period.
The business lobby group is forecasting growth of 3% this year, up from a previous estimate of 2.7%.
However the CBI warned that political uncertainty remained "a major risk to the recovery".
"Businesses recognise the realities of election time but want all parties to ensure their policies make a positive difference," said CBI director-general John Cridland.
"Politicians must be wary of the risk of headline-grabbing policies that weaken investment, opportunity and jobs," he added.
In addition to an increased forecast for growth this year, the CBI is also expecting 2.7% growth in 2015 - an increase from a previous estimate of 2.5%.