Posen Says U.K. House Price Bubble May Fuel Crisis in Sterling

Former Bank of England policy maker Adam Posen said the U.K. government’s program to aid first-time home buyers may be fueling a bubble in prices that could provoke a crisis in the pound.

“I definitely see the potential” for a sterling crisis, Posen said on Bloomberg Television’s “The Pulse” with Guy Johnson. “Sterling’s going to be up but I fear it’s going to be as temporary as the housing-price boost from Help to Buy.”