Pound Rises Third Day as Carney Moves to Counter Housing Bubble
This article is for subscribers only.
The pound rose for a third day versus the dollar as Bank of England Governor Mark Carney said the central bank will end incentives for mortgage lending to head off threats to financial stability from the housing market.
Sterling climbed to the strongest since January against the greenback before reports tomorrow that economists said will show consumer confidence improved this month and mortgage approvals rose in October. Carney said allowances under the central bank’s Funding for Lending Scheme will only apply to business lending from 2014 and no longer be available for home loans. U.K. government bonds rose after the Debt Management Office sold 2.5 billion pounds ($4.09 billion) of 30-year debt.