Carney: Rate hike 'not the right tool' to deal with a housing bubble

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. 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 range of macro-prudential tools available to the Bank's Financial Policy Committee, such as adjusting bank capital requirements or mortgage affordability requirements. He also pointed ...