Carney will act to dampen 'warp speed' housing market

Bank of England Governor Mark Carney will act to prevent the housing market growing at 'warp speed', and said there are economic tools he can use other than keeping interest rates low.

In a speech to the Economic Club of New York, the Bank of England Governor suggested he may not move to hike interest rates straight away if unemployment falls quickly. “It is unlikely that equilibrium interest rates will return to historically normal levels any time soon,” the Governor said. “This prospect [of low interest rates for a long time] puts a premium on macroprudential policies and financial reforms to manage the associated risks without abandoning the need to keep interest rates in line with the equilibrium level,” he said. In the summer the Governor indicated the impor...