BOE’s Carney: U.K. Economy Needs Further Policy Support

Bank of England Governor Mark Carney said the U.K. economy needs further policy support and pledged to maintain vigilance over the risks easy money might create for the housing market.

“We need to provide a lot of stimulus, but that stimulus can create risks,” Carney, 48, said in an interview on the “Charlie Rose” show aired on Bloomberg Television. “We need to take other steps in order to reduce those risks. If we don’t, we’re going to create bigger problems down the road or we’re going to have to pull back too soon on monetary policy, which is the last thing we want to do.”

Data today showed a measure of U.K. house prices rose to the highest in more than a decade last month. Carney, the first foreigner to run the BOE, took action to head off a potential housing bubble last month by diluting a credit-boosting program. He said in a speech in New York yesterday that the move will help officials keep monetary policy loose for longer.

Bloomberg

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