Former Canadian bank chief tries to cool UK housing market

Former Canadian bank chief tries to cool UK housing market

Mark Carney, former governor of the Bank of Canada is trying to cool the increasingly temperature in the UK housing market. While the Canadian economy he left behind continues to show signs of a bubble; although many economists and the Finance minister say that’s unlikely; in the UK he has to deal with an unsustainable situation. Having been given new powers by the Treasury, Mr Carney, governor of the bank of England, is now putting a cap in place to stop lenders from issuing more than 15 per cent of their mortgages to those borrowing more than 4.5 times their salary. Although this will not have an immediate impact on the market, Mr Carney believes it will start to cool things down. He has said that an overheating housing market could become a major threat to the recovering UK economy. Read the full story.