The Bank of England publishes its Financial Stability Report as Governor Mark Carney faces pressure from colleagues. As David Pollard reports, several Monetary Policy Committee officials have defected in recent days to the camp supporting a rise in base interest rates.
It wasn’t so much the elephant in the room …
As the Bank of England policymakers who weren’t.
Last week’s shock vote by three MPC members to hike rates putting surprise pressure on UK bond yields – and governor Mark Carney.
The Bank’s chief economist, Andy Haldane, also stating he could break ranks.
The business of this meeting, though: financial stability.
The BoE’s Financial Policy Committee outlining plans to tighten credit rules.
(SOUNDBITE) (ENGLISH) BANK OF ENGLAND GOVERNOR, MARK CARNEY, SAYING:
“Consumer credit has been increasing rapidly … There are also potential risks to financial stability associated with the range of possible outcomes and the number of paths to them under the Brexit process.”
With that process looming, the bigger risk may be to the consumers as Brexit continues to bash the pound.
One measure showing their confidence slumping – just as a near three per cent inflation means wages – in real terms – are slipping.
Another survey shows consumer borrowing at its slowest, in fact, in a year and a half.
(SOUNDBITE) (ENGLISH) NEIL WILSON, SENIOR MARKET ANALYST, ETX CAPITAL, SAYING:
“He’s in a bit of a jam really, I would say … There is a bit of a headache there for Mark Carney, because I think really ideally there’s a sense that maybe…