Bank has 'room to raise interest rates' without hitting borrowers

The Bank of England (BoE) could increase interest rates a "fair amount" without hurting homeowners taking advantage of the government's Help to Buy scheme, according to one of its policymakers.

The BBC reports Ben Broadbent, who sits on the Monetary Policy Committee (MPC), has said rates could go up a fair amount before "borrowers got into great difficulties". Concerns over potential rate rises have been mounting as signs of a housing market bubble re-emerge. An upswing in prices, caused in part by the Government's scheme, has spooked fears that borrowers are once again over-extending themselves and could be caught out if rates suddenly rise. However, Broadbent stressed a rate rise would not be allowed to "choke off" recovery. Rates would only increase if the economy ...