Carney vows to take action on the BTL sector

Graham_Devon

The Bank of England has again expressed concern about the UK's buy-to-let property market.

The Bank's governor, Mark Carney, said he was concerned about high levels of lending to landlords and that the Bank would take action.

"There are a number of things happening ... we are watching it closely and we will take action," he told the FT.

No sure what the action is, but this fear of landlords selling up could be self fulfilling if they keep hitting the BTL sector!

http://www.bbc.co.uk/news/business-35108952

wotsthat

He's picking up some British habits. When trying to deflect something talk about something to do with houses and interest will be lost in the subject.

I found it amazing that he's been as good as promising interest rate rises for more than a year and his latest excuse is that he couldn't predict oil would fall 12% in 10 days! It makes it sound as if the MPC are making decisions based on what they read in the newspaper on the day they meet.

Luke273

wotsthat wrote: »

He's picking up some British habits. When trying to deflect something talk about something to do with houses and interest will be lost in the subject.

I found it amazing that he's been as good as promising interest rate rises for more than a year and his latest excuse is that he couldn't predict oil would fall 12% in 10 days! It makes it sound as if the MPC are making decisions based on what they read in the newspaper on the day they meet.

"Light showers forecasted in Britain today...better postpone interest rate rises"

wymondham

I'm seeing a new way to manage things..... talk about it without actually doing anything about it. So many times we hear about what the BoE/Carney will do.....

I'm in IT and I think I'll just talk to my customers about fixing their PC rather than doing it.... wonder how long I'll be in business?

Rich2808

You only have to look at his record in Canada to know why Carney was appointed. He talks a lot but seems to do nothing - always moving the goalposts on interest rate rises and always monitoring this or that.

Electrum

Doomed if they raise rates doomed if they postpone

They have already lost all credibility, well I suppose they could try and claw some back

CLAPTON

Electrum wrote: »

Doomed if they raise rates doomed if they postpone

They have already lost all credibility, well I suppose they could try and claw some back

why do they need credibility?

Electrum

CLAPTON wrote: »

why do they need credibility?

Ha yes exactly.

I say ignore these Muppets and just let the free market be allowed to work.

But then all the bubbles will pop, the largest is the debt bubble.....

Graham_Devon

wotsthat wrote: »

I found it amazing that he's been as good as promising interest rate rises for more than a year and his latest excuse is that he couldn't predict oil would fall 12% in 10 days! It makes it sound as if the MPC are making decisions based on what they read in the newspaper on the day they meet.

I've bought this up on several occasions (you may remember as you attempted to disagree with me on every occasion). Forward Guidance, in hindsight seems to have been the wrong policy. It's a bit of a joke now, even in the press.

One article showed how nearly every couple of months the tone in forward guidance seemed to change from "lower for longer" to "time is closer for an increase" (well of course it is, time is forever closer). The overarching view appeared to be that he was attempting to placate the markets by telling everyone what they wanted to hear.

In terms of BTL though - I may be wrong, but I feel they will follow through with this. It seems "the thing" at the moment and the government is certainly taking action rather than simply talking.

redux

The time when interest rates will eventually rise is still getting closer, as
per his genius statement a few months ago.

(The next time interest rates will drop is approaching at exactly the same speed.)

wotsthat

Graham_Devon wrote: »

I've bought this up on several occasions (you may remember as you attempted to disagree with me on every occasion). Forward Guidance, in hindsight seems to have been the wrong policy. It's a bit of a joke now, even in the press.

I don't think there's anything wrong with forward guidance and it's a good way to manage expectations. The problem I have with it is I seem to have been managed to expect something quite different to what happened.