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BoE Carney shifts lending focus from home buyers to SMEs as house prices accellerate

FXstreet.com (London) – Bank of England governor Mark Carney today announced that the central bank would be moving to strongly rein in its policy to support mortgage borrowing as house prices begin to further accelerate.

The Bank of England launched the Funding for Lending scheme in June last year in tandem with the Treasury to prop-up lending to home buyers and small businesses.

Under the Funding for Lending scheme, banks and building societies are able to access cheap credit from the central bank as a carrot to encourage them to lend.

However, with the UK economy strongly outperforming forecasts, the BoE is set …read more