"The package of measures I have described today will contribute to a constructive evolution of the housing market. By reinforcing financial stability, they further reinforce the MPC's ability to provide exceptional monetary stimulus to the entire U.K. economy for as long as it deems appropriate."
- Mark Carney, BoE Governor
The Pound advanced to its ten-month high versus the U.S. Dollar, following the highly anticipated press conference of the central bank Governor Mark Carney in London. The cable stood at the highest since January 2, advancing 0.33% to 1.6342, while against the single currency the Pound climbed 0.20%.
The Governor addressed growing concerns over a housing bubble, by saying the BoE has no power to either curb or stop government schemes, like Help to Buy; however, they are planning to end incentives for mortgages in a package designed to fight risks to financial stability. The BoE's Prudential Regulation Authority, the nation's main watchdog, pledged not to extend its Funding for Lending Scheme to offer cheaper loans for all potential buyers. Earlier in April, the central bank announced its readiness to extend the programme to 30 January 2015.
The FLS programme was launched in July 2012, and it was designed to improve lending to the real economy. Howbeit, the U.K. has experienced a sharp hike in property prices, and while the pace of growth of values in London offset inflationary pressure, there are little signs of a growing bubble in other regions.
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