BoE’s Mark Carney Says No Housing Bubble Threat

The Bank of England governor, Mark Carney, has played down the threat of a UK housing bubble – as the Royal Institution of Chartered Surveyors (RICS) warned house price rises could become unsustainable in some areas.

Carney told MPs on the Treasury committee that Britain’s rising market was not currently a threat to financial stability, because mortgage approvals and sales were picking up from low levels during the financial crisis.

“We’ve had an acceleration from quite a low level. Any time we see a sharp increase in credit growth we take an interest.

“We do have to put in some context though that it is still running below historic averages.”

Carney added that the Bank was monitoring the government’s Help to Buy scheme, but stressed it was modest in scale compared with the overall market.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza