Skip to content
Subscriber Only

Carney at Tolerance Limit as BOE Acts to Curb Housing Risks

Mark Carney said the biggest risks to Britain’s recovery stem from the housing market as he introduced measures to limit riskier mortgages and prevent an unsustainable buildup of consumer debt.

The unprecedented action was prompted by booming demand for real estate and an increase in high loan-to-income mortgages, with the Bank of England governor saying debt levels put the economy in a vulnerable position. Today’s announcement is the biggest recent effort by a major central bank to tackle the threat of an asset bubble and avoid a repeat of the 2008 financial crisis.