"The Bank is acutely aware of the risk of unsustainable credit and house price growth and will be monitoring it closely," he said in Nottingham on Wednesday.
"The important thing to recognise is that we now have tools other than interest rates that can be used to contain risks in the property and financial sectors. We are now fully prepared to deploy them if that were needed."
The Bank could, he said, use its newer tools to recommend that banks and building societies "restrict the terms on which new credit is provided, or even to raise capital requirements on mortgage or other types of lending".
This would allow the Bank to avoid raising wider interest rates across the economy even as it acted to put the brakes on specific areas.
Mr Carney also signalled to the markets that they are dramatically off in their bets on when interest rates will start to rise. » | Emma Rowley | Wednesday, August 28, 2013
My comment:
This Carney guy has very quickly turned into a nightmare for savers, hasn't he? Doesn't he know what he is doing to people's hard-earned, hard-saved money? Doesn't he realise that many people depend on their savings, especially in old age? Doesn't he realise that most people cannot live off their fat earnings of £800,000+ per annum, and receive an exceedingly generous housing allowance too?
The sham independence of the Bank of England has been dreadful for the UK. It has let our politicians off the hook. Now they can hide behind 'the independence' of the BoE, when in actual fact it isn't truly independent at all. In years gone by, the Prime Minister and the Chancellor of the Exchequer would have found it very difficult to keep interest rates so low with price inflation running so high and pensioners hurting so badly. With this sham independence, they can get away with murder. – © Mark
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