02-11-2007
New concerns raised over financial market difficulties
Fresh concerns have been raised over the current difficulties in the global financial markets, it has emerged.
According to comments made by Charlie Bean, chief economist for the Bank of England, the UK's mortgage market could buckle under a tightening in the availability of inexpensive loans as a result of the current difficulties.
Mr Bean also warned that the implementation of more rigid lending criteria by mortgage providers could impact upon the UK's housing market.
"Though house prices have broadly held up, some of the indicators point to a weaker outlook," said Mr Bean.
"If equity or property prices were to fall significantly, then that would probably affect both the quantity of credit advanced and its price," he added.
Mr Bean made his comments during a speech in the City of London.
In related news, as a result of lowering expectations that the Bank of England's monetary policy committee will next week reduce interest rates, sterling has today (November 2nd) made further gains against the dollar, reports Reuters.