The International Monetary Fund (IMF) has warned the government that accelerating house prices and low productivity pose the greatest threat to the UK's economic recovery. Rising property values could leave households more vulnerable to income and interest rate shocks.
Two new deputy governors have been named at the Bank of England, as part of a radical shake-up by governor Mark Carney. Ben Broadbent will become deputy governor responsible for monetary policy, and Nemat Shafik will take charge of markets and banking.
UK Chancellor George Osborne said next month’s Budget will continue to confront Britain’s problems as he cautioned the recovery was “not yet secure” despite a recent surge in growth.
Bank of England governor Mark Carney has said he is concerned about the potential for a UK housing market bubble, but will tighten lending requirements if necessary. Meanwhile, a survey suggested house prices will continue surging ahead.
The Bank of England held interest rates at a record low once more this week in spite of mounting optimism over the UK recovery. A flurry of encouraging signs on the UK economy has fuelled expectations for growth to pick up to around 1% this quarter.
Bank of England has left interest rates unchanged at 0.5% and made no change to its program of quantitative easing, as had been widely expected. The decision came as no surprise as the Bank has said it will not consider a rate rise until the unemployment rate falls below 7%.
Bank of England officials left their bond-buying program unchanged on Thursday as they assessed the impact of Governor Mark Carney’s forward guidance policy to keep interest rates low amid a strengthening economic recovery.
The Bank of England's new Governor Mark Carney said the central bank will not consider raising its record low interest rate and stimuli until unemployment falls below 7%.
Bank of England's Monetary Policy Committee (MPC) has left interest rates at 0.5%. The key borrowing rate has been at that level since March 2009. MPC also said it would make no change to the £375bn of monetary stimulus it is providing through its quantitative easing program (QE).
The Bank of England on Thursday voted to keep its main interest rate at 0.5% following a monetary policy meeting, the last for departing Governor Mervyn King. The BoE also decided against creating more cash under its Quantitative Easing (QE) program that is aimed at boosting growth amid Britain's fragile economic recovery.