Committee could advise government if scheme puts financial - TopicsExpress



          

Committee could advise government if scheme puts financial stability at risk, says governor, but Treasury will have final sayMark Carney, the governor of the Bank of England, has insisted Threadneedle Street does not hold a veto over George Osbornes controversial Help to Buy policy should the scheme jeopardise financial stability.The chancellor announced in October that the Bank would be asked to review the taxpayer-backed mortgage support scheme yearly, amid growing fears it could inflate an unsustainable housing bubble.But in a letter to Treasury select committee chairman Andrew Tyrie, published on Thursday, Carney makes clear that while the Banks financial policy committee (FPC) could advise the government at any time if Help to Buy is putting financial stability at risk, the final decision about if it should continue will lie with the Treasury.The FPC has no power to require the Treasury to vary the terms of, or close, the Help to Buy scheme, Carney writes in reply to a letter
Posted on: Thu, 28 Nov 2013 00:36:21 +0000

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