Concerns about soaring prices in the housing market have led Governor of the Bank of England Mark Carney to indicate the bank will intervene to prevent a bubble.
Mark Carney, the Governor of the Bank of England has said the bank will move to stop the property market booming at “warp speed” – although he added that interest rates are unlikely to be raised anytime soon. He disregarded concerns about a “liquidity trap” where low interest rates would no longer be able to incentivise consumers and businesses going forward. The Bank of England has already scrapped the Funding for Lending scheme for mortgage to cool the housing markets and Carney has said other measures will be taken if that doesn’t work. He also said that the UK trade deficit is at a “record high”, which leaves the economy exposed to the recovery of the global economy.
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