- Will adjust bank rate when economy has got far enough back to normal
- Monetary policy not the right tool for house prices
- Monetary policy is the last line of defence against financial stability risks
- There has been an increase in higher LTV rates in mortgages
- FPC needs to look into vulnerabilities in affordability and overhangs in housing market
- FPC has a range of tools to address housing risks
- Risks to financial stability are centered around housing market
BOE’s Bean
- Spare capacity is a highly uncertain thing compared to say GDP
- Can only focus on the central view, which is 1.0-1.5% range for spare capacity
- Suggest people don’t get too hung up on precise capacity estimates
