Carney Keeps Rates on Hold as BOE Seeks Housing Curbs

The Bank of England kept borrowing costs at a record low today as policy makers look to untested tools to control Britain’s surging housing market.

The Monetary Policy Committee led by Mark Carney held the key interest rate at 0.5 percent, reinforcing his view that the panel is the “last line of defense” against property risks. That will intensify the onus on the BOE’s Financial Policy Committee to devise a plan of action for real estate. While the MPC didn’t issue a statement with the decision, it dropped a reference to forward guidance that featured in previous months.