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Carney’s Loan Cap Seen as Too Weak to Stifle Housing Boom

Bank of England Governor Mark Carney may need a bigger weapon to subdue risks from Britain’s booming property market.

Faced with house-price increases of almost 20 percent in London and calls to prevent a bubble from threatening financial stability, Carney said yesterday the bank would impose a cap on loan-to-income ratios and other limits on mortgages. BOE projections show the measures will have no immediate effect on mortgage approvals and prices, which jumped about 10 percent nationally in the past year.