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BoE Vigilant About Risks On Housing Market, Carney Says

The U.K. economy is in the early stages of recovery and the most of the momentum is coming from household sector, Bank of England Governor Mark Carney said in an interview with the Western Mail newspaper on Tuesday.

Regarding the housing market, BoE chief said the market is picking-up from quite low levels. Carney said the bank would be "vigilant" about signs of "acceleration and greater exuberance in lending practices."

He noted that the bank is better placed with a wide range of tools that it can deploy in case of overheating in the property market before adjusting key interest rates.

"We're now the supervisor of the banks and building societies so we could tighten that supervision," he said.

Carney noted that lending to new businesses is "not quite" where he would want it to be. "We may not see very strong net lending figures but it's important that new businesses are getting access to credit because now we're starting to be at a point in the recovery where that should really start to happen," said Carney.

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