Carney’s tools get backing in economist poll

THE BANK of England’s new macroprudential toolbox is the right way to deal with the risks posed by a frothy housing market, according to a survey of economists released this morning.

The Centre for Macroeconomics polled economists on whether more action should be taken to cool the housing market, with 72 per cent agreeing.

When asked whether the financial stability tools were the best way to tackle the issue, 53 per cent agreed, while only 27 per cent disagreed.

But many noted the lack of experience with the policies, with economist David Cobham saying that rate hikes “should be kept as a backstop… if the macroprudential tools turn out not to work well”.

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