Carney said that the Bank was 'fully aware' that the environment of low and predictable interest rates necessary to nurture the recovery could encourage excessive risk taking in financial markets and by households.
In November, the Bank’s Financial Policy Committee announced initiatives to reduce the stimulus being provided by the authorities to the housing market, such as the Help to Buy scheme.
Carney said:
"We will not hesitate to take further proportionate and graduated action as warranted. That will allow monetary policy to remain focused on providing the stimulus the economy needs for as long as it is needed to secure a strong, sustained recovery."
