Carney Sees Housing Debt Risk as Rate Increases Near
This article is for subscribers only.
Mark Carney said rising U.K. mortgage debt may threaten Britain’s recovery as he signaled interest rates might start to rise earlier than anticipated.
Investors pulled forward bets on the timing of the Bank of England’s first benchmark rate increase from the record-low 0.5 percent after the central bank governor said it “could happen sooner than markets currently expect.” Speaking yesterday at the annual Mansion House speech in the City of London, he said higher borrowing costs could stretch over-leveraged households and undermine financial stability.