BoE's Broadbent: Housing market biggest threat to UK stability

FXStreet (Barcelona) - Speaking at the Parliamentary Hearing on Wednesday BoE policymaker Ben Broadbent warned that the overheating housing market in the UK posed the biggest potential risk to UK's financial stability.

The BoE policymaker said that the bond market did not pose such a threat anymore as QE and other factors helped reduce bond yields.

Over the next five years the BoE will be working on the normalization of monetary policy, including making communications more clear, Broadbent signaled. He also said interest rates would remain lower during this time than they were before the crisis.

A significant slowdown in China's economic activity would be harmful for the UK economy, the BoE policymaker added.