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FPC & Carney - Do....well, nothing

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Comments

  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Does seem a bit odd with Osborne pushing HTB at the same time that Carney is suggesting higher LTV restrictions.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Bantex wrote: »
    Does seem a bit odd with Osborne pushing HTB at the same time that Carney is suggesting higher LTV restrictions.

    The BoE is meant to be independent rather than an arm of Government.

    As a result, it seems perfectly reasonable that the Government and the BoE should sometimes have different views.
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Generali wrote: »
    The BoE is meant to be independent rather than an arm of Government.

    As a result, it seems perfectly reasonable that the Government and the BoE should sometimes have different views.
    I thought part of BoEs remit was to facilitate government policy.
  • wymondham
    wymondham Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    Generali wrote: »
    The BoE is meant to be independent rather than an arm of Government.

    As a result, it seems perfectly reasonable that the Government and the BoE should sometimes have different views.

    With this in mind can you ever see a situation whereby the BofE puts up interest rates without the Chancellors backing?
  • wymondham
    wymondham Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    Bantex wrote: »
    I thought part of BoEs remit was to facilitate government policy.


    That would mean they are not independent? Not for one minute I think they are actually independent!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Bantex wrote: »
    Does seem a bit odd with Osborne pushing HTB at the same time that Carney is suggesting higher LTV restrictions.

    Why? Average FTB mortgage is actually 3.2 times income. So HTB has many positives not least economic activity.

    Carney is addressing the position with the financial stability of the banks , with any impact on the property market a secondary issue
    in mind.

    Take an eagles eye view of the whole picture. Rather than ground up.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Bantex wrote: »
    I thought part of BoEs remit was to facilitate government policy.

    As usual, you thought wrong dude
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Dan: wrote: »
    As usual, you thought wrong dude
    Check out the link to BoE website.
    First para regarding remit "to support the governments economic objectives"
    http://www.bankofengland.co.uk/monetarypolicy/Pages/framework/framework.aspx
  • antrobus
    antrobus Posts: 17,386 Forumite
    Dan: wrote: »
    As usual, you thought wrong dude

    Doesn't s11 of the Bank of England Act 1998 still apply?

    In relation to monetary policy, the objectives of the Bank of England shall be —

    (a) to maintain price stability, and

    (b) subject to that, to support the economic policy of Her Majesty’s Government, including its objectives for growth and employment.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    who cares. long may low interest rates continue! :)
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