FINANCIAL STABILITY REPORT PRESS CONFERENCE TUESDAY 28 JUNE 2017 Mike Peacock
FINANCIAL STABILITY REPORT PRESS CONFERENCE TUESDAY 28 JUNE 2017 Mike Peacock: Okay, if you could give us your name and organisation, wait for a mic and one question first time round please, we’ll loop back round if we have time at the end. Kamal and then Adam, please. Kamal Ahmed, BBC: Thank you. Governor, there was a warning today to the banks about consumer borrowing and the growth in consumer borrowing, but of course, the loans market takes two to tango, so to speak. I just wondered how concerned you are that consumers are borrowing too much and that if these benign conditions on interest rates, for example, don’t last and interest rates rise, that millions of people could find themselves in difficulty and overextended. Mark Carney: Well, I think in terms of messages to consumers, the first is one that’s that same message whether times are good or bad or somewhere in between, which is that whenever somebody takes out a mortgage or a loan for a new business, or an investment, that they consider adverse scenarios as well as positive scenarios. As you’ve just said, whether interest rates can go up as well as stay the same, whether exchange rates could move, and whether the overall pace of growth could change as well. The track record of the British people, the British borrowers, suggests that they do take those factors, by and large, into account. Certainly, in an environment in which we’re operating, it is that general advice, that stating the obvious, which is often the advice you get from a central banker, is particularly apt.
[Show full text]