Better data brings a renewal at the bank of England

• Autores: Michael Fitzgerald
• Localización: MIT Sloan management review, ISSN 1532-9194, Vol. 57, Nº 4, 2016, págs. 2-2
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • In June 2014, the Bank of England one of the world's oldest central banks was preparing to announce its policy recommendations about the United Kingdom's housing market. At the time, a dearth of new housing starts and a recovering economy was driving up housing prices, notably in London. This had raised concerns of a repeat of the market behaviors that had led to an economic crisis five years earlier. The Bank's recommendations would be closely watched by the financial sector. Several executives inside the Bank saw the policy recommendation as a watershed moment for the institution: It was one of the first times the Bank would make a major policy recommendation based in part on data from Britain's Financial Conduct Authority (FCA), Overall indebtedness was a concern that the Bank wanted to address in particular, the pace of lending for mortgages with high loan-to-income ratios. The housing market recommendations were part of the Banks June 2014 Financial Stability Report. A disconnect in the UK housing market saw new housing starts at significantly lower levels than they had been before the 2008 or 2009 crisis, creating a demand-and-supply imbalance that was driving up prices faster than wages were growing. This in turn created concerns on the Banks part over an apparent loosening in underwriting standards.