26 Jun 2014
BoE's Carney: Gradual rate path needed to prevent a destabilization of UK economy
FXStreet (Łódź) - Mark Carney signals that the impact of the FPC actions would be assessed at the July monetary policy meeting.
• He suggests that the UK economy is still vulnerable and needs a gradual rate path.
• Housing in the London area poses the biggest threat, specifically risks in the London/South East from high loan to income mortgages.
• The BoE's move is aimed at limiting reckless mortgage lending in case wages and unemployment don’t correct as expected.
• Banks have reached "the limit of our tolerance" for risky lending.
• Momentum in the housing market should continue for roughly a year, Carney predicts.
• He suggests that the UK economy is still vulnerable and needs a gradual rate path.
• Housing in the London area poses the biggest threat, specifically risks in the London/South East from high loan to income mortgages.
• The BoE's move is aimed at limiting reckless mortgage lending in case wages and unemployment don’t correct as expected.
• Banks have reached "the limit of our tolerance" for risky lending.
• Momentum in the housing market should continue for roughly a year, Carney predicts.