Alongside the release of its Financial Stability Report, the Bank of England has unveiled new measures to blunt the incentives for banks to make new mortgage loans. While these initiatives may do little directly to cool the housing market, the Financial Policy Committee (FPC) has more substantial tools it can use. So the danger that interest rates have to rise to cool the housing market remains small.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services