‘Mark Carney has signalled that he is prepared to act to prevent a housing bubble getting out of control as he delivered his first speech as Governor of the Bank of England.
The Bank could use new tools to recommend that banks and building societies “restrict the terms on which new credit is provided, or even to raise capital requirements on mortgages or other types of lending”, he told business leaders in Nottingham.
Mr Carney added: “The Bank is acutely aware of the risk of unsustainable credit and house price growth and will be monitoring it closely. The important thing to recognise is that we now have tools other than interest rates that can be used to contain risks in the property and financial sectors. We are now fully prepared to deploy them if that were needed.”‘
Sources: The Daily Telegraph, Financial Times, The Independent