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Osborne Urged to Say What FPC Should Do on U.K. Housing Boom

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May 9 (Bloomberg) -- U.K. Chancellor of the Exchequer George Osborne should be clearer about what he expects the Bank of England’s Financial Policy Committee to do to address potential risks in the housing market, lawmakers said * The govt should “state what indicators it believes are most

important in detecting any wider economic risks arising from

the housing market,” the cross-party Treasury Committee

said in a report published today; Osborne should also

explain “whether he expects the FPC to interpret its remit

in a way that might prompt it to take further action as a

consequence” * The report comes after the OECD warned this week of

potential overheating in the property market and BOE Deputy

Governor Jon Cunliffe said it was “dangerous” to ignore

its momentum; surging home values driven by London have

sparked concern that government incentives and record-low

interest rates are fueling an unsustainable boom * “The FPC and the bank’s legitimacy can only be enhanced by

a wider public understanding of their powers and

decisions,” Treasury Committee Chairman Andrew Tyrie said

in the statement; “housing bubbles are easy to spot in

retrospect. The FPC has been given the challenging role of

identifying them in advance”

For Related News and Information: Carney Low-Rate Drive Shifts Focus to Untested Housing Tools NSN N597NT6JIJV3 <GO> BOE Tools to Tame U.K. Homes Market May Not Work, OECD Says NSN N55IS06S972O <GO>

To contact the reporter on this story: Svenja O’Donnell in London at +44-20-7222-1092 or sodonnell@bloomberg.net To contact the editors responsible for this story: Craig Stirling at +44-20-7673-2841 or cstirling1@bloomberg.net Andrew Atkinson, Thomas Penny

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