Case for action if credit grows faster than GDP – BOE’s Cunliffe

Speaking at the British Property Federation Residential Conference, in London, BOE’s deputy governor for financial stability Sir Jon Cunliffe noted that the central bank will keep a watch on the credit growth and would take appropriate action if credit grows faster than GDP.

Key Quotes:

If credit began again to grow faster than GDP, I would want to think about action to manage financial stability risk sooner rather than later

The position is vulnerable to upward shifts in interest rates without a similar increase in incomes

To the extent that the fall in interest rates was the result of structural factors that are likely to last, the increase in household debt is more likely to be sustainable