RICS: Is it time for a second nominal anchor in the UK? - Managing house price inflation with macroprudential tools
Published summer 2013
In this note we argue that:
The Bank of England’s Financial Policy Committee should consider adopting an explicit house price inflation policy using macroprudential tools.
We suggest setting an annual growth rate threshold in a national index, which if exceeded, triggers tighter macroprudential policy.
This should help anchor private sector house price expectations, thereby curbing excessive risk taking and the build-up of financial imbalances.
This should not be considered as a stand alone policy; it entails risks, so would need to form part of a package of measures that addresses these risks.
- File type: PDF
- Size: 195.71 KB
Your download should start automatically;
if it doesn't please click below.
In some browsers you may need to click the security bar at the top or bottom of the screen and select to download the file.
To manually start the file download, use the link below.