Carney told to tackle property frenzy ahead of Bank’s report

AS THE Bank of England prepares for tomorrow’s inflation report, economists are warning governor Mark Carney to get serious about London’s property market if he does not want to hike rates.

The Bank is thought to want to delay discussion of rising rates, but analysts say Carney must control the housing market with the financial policy committee’s tools.

“Carney has been warning he will take action if prices look to be getting out of control since his first speech as Governor last August. But this attempt to talk the market down has met with limited success,” said Matthew Pointon of Capital Economics.

Societe Generale’s Brian Hilliard also notes that Chancellor George Osborne the Bank’s tools to tackle the housing market in speeches last week, perhaps laying groundwork for or signalling approval of action.

The housing market has been particularly frothy in London, with prices rising more quickly.