curbing consumer lending would be ‚big call’
LONDON (Reuters) Bank canadian goose jacket of England Governor Mark Carney said it would be a call for canada goose uk black friday the central bank to rein in rapid growth in buy canada goose jacket consumer lending, which picked up strongly last year and canada goose factory sale brought some echoes of the period before the global financial crisis.
Bank of England Governor Mark Carney delivers the Liverpool Canada Goose Parka John Moores University’s canada goose clearance sale Roscoe Canada Goose Jackets Lecture, at the BT uk canada goose Convention Centre in buy canada goose jacket cheap Liverpool, Britain December 5, 2016. REUTERS/Peter Byrne/Pool
British consumer borrowing increased at the fastest annual rate for more than 11 years in November, the BoE said last week, and Carney told lawmakers that the momentum appeared to have continued into the Christmas holiday season.
Asked about measures of debt stress on households, Carney said there were signs the situation was under control, but that the BoE Financial cheap Canada Goose Policy Canada Goose Online Committee (FPC) would watch out for problems in the event of an economic canada goose slowdown.
we as a committee will have to think about, and it is a big call, is whether there is anything that should be done, above and beyond making sure the core Canada Goose online of the system is resilient to this, he said. is a big step to go beyond that.
Economists are watching to see if the pace of lending is maintained this year or slows as Britain kicks off the process of leaving the European Union canada goose coats and inflation picks up canada goose clearance after a post Brexit vote slump in the value of the pound.
Growth in 2016 canada goose store relied heavily on consumer spending, which was partly funded by households borrowing more and saving less.
Alex Brazier, a BoE executive and FPC member, said the bank would be vigilant about a broader loosening Canada Goose sale of credit conditions Canada Goose Coats On Sale beyond the car finance market which was in its sights last year.
Another FPC member canadagooseoutlete.com Canada Goose Outlet https://www.canadagooseoutlete.com , Martin Taylor, said consumer uk canada goose outlet credit growth was a light for canada goose uk outlet the committee canada goose coats on sale which needed to understand the situation better, but not necessarily a problem.
Consumer credit is only a small part of total lending to households, which canada goose uk shop BoE figures show is growing by 4 percent a year, compared with nearly 11 percent for consumer borrowing, and Brazier said the BoE could afford a considered approach.
As a share of economic output, household debt remains well below levels canada goose black friday sale seen before the 2007 09 financial crisis.
The FPC lacks specific tools to target consumer borrowing, but one option would be to make banks hold more capital to penalise risky lending in general.
It will review in the summer whether to ask banks to begin increasing cheap canada goose uk the amount of capital they hold against cyclical upturns in the credit cycle.
This buffer was Canada Goose Outlet reduced to zero after Britain vote to leave the EU rattled markets, and Brazier said it could stay there some time unless risks diminished.
