Bank of England Governor Mark Carney has tried to defuse expectations of an imminent rate hike by saying it would "not be the right tool" to deal with a booming housing market.
Speaking following the publication of the Bank's latest quarterly inflation report, Carney again attempted to play down expectations of imminent rate rises, and suggested the housing market will not change that view. Latest figures from Nationwide show annual house price growth has reached double digit figures for the first time in four years, with prices rising at an annualised 10.9% last month. Asked whether an incipient housing bubble could be dealt with by a rate rise, Carney said "monetary policy would not be the right tool" to approach the problem. He instead pointed to the r...
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