The Bank of England is worried.....

[Mega]

http://www.thisismoney.co.uk/money/m...rk-Carney.html

Read the conments!
Mike

[Fox]

Re: The Bank of England is worried.....

Sounds like Carney wants some ammo to start jaw boning down UK prices.

He tried this and failed over here in Canada with a bunch of half measured that did nothing to stop flood of easy money into housing. Until ZIRP ends, bubbles will grow; and when ZIRP ends, bubbles will pop. However nobody wants to stop the race to the bottom, as the country that blinks first will send their currency through the roof and employment into the gutter.

Just ask the ECB. They (germans) are fighting ZIRP tooth and nail and the Euro zones unemployment rate is 12% (although is this because they report more accurately than other places?)

Anyways, let Carney talk his usual spiel. At the end of the day, like all other central bankers, he'll just follow his US cue cards.

[GRG55]

Re: The Bank of England is worried.....

Still at it...

Bank of England's Mark Carney highlights housing market's risk to UK economy

UK housing market has 'deep, deep structural problems', says governor, and there is little the Bank

Press Association
theguardian.com,

Sunday 18 May 2014 09.10 BST

Britain's booming housing market represents the "biggest risk" to theeconomic recovery, Bank of England governor Mark Carney has warned.

With approvals for large mortgages on the increase, Carney expressed concern about the dangers of another "big debt overhang" building up.

In an interview with Sky News's Murnaghan, to be shown on Sunday, he said the Bank was monitoring the situation closely.
But he said there was little they could do about the "deep, deep structural problems" in the housing market, with demand for homes outstripping supply.

Carney surprised some analysts last week when he played down the prospects of an early rise in interest rates – despite the fears of a housing market bubble.

In his interview – according to advance extracts released ahead of the programme – he said the Bank of England was watching to ensure the banks had enough capital to withstand the risks involved.
They were also checking lending procedures to try to ensure that mortgages were only issued to people who could afford them.

"By reinforcing both of those we can reduce the risk that comes from a housing market that has deep, deep structural problems," he said.

Nevertheless, he said that there was evidence that large value mortgages – with loans of more than four times a borrower's salary – were on the rise again, with the risk that they could destabilise the economy.

"The biggest risk to financial stability, and therefore to the durability of the expansion – those risks centre in the housing market and that's why we are focused on that," he said.

"We don't want to build up another big debt overhang that is going to hurt individuals and is very much going to slow the economy in the medium term...

[Mega]

Re: The Bank of England is worried.....

Some UK Banks have now said they cap loans @ 4X earnings...............hmmmm, i think this crap will keep-a-coming till we end the "Event Horzion" we on right now & return to "normal" times, eg rates @ 5% ish

Mike

[DRumsfeld2000]

Re: The Bank of England is worried.....

If rates went to 5% it would bankrupt most of the UK. I find it hard to see how rates can rise anywhere, but at the same time this funny money is causing chaos. No one seems to be able to explain what is going on or possibly could happen. A lot of yap yap and not much else.