Slightly odd this one.
The Bank and its Governor, Mervyn King, would be able to prevent banks from lending too much, or to over-extended customers, if they judge that this would destabilise the economy.
The precise details of the controls the Bank is to be given will be detailed fully at a later date.
As a general (although not exclusive) rule rationing by price is better than any other form of rationing.
The housing boom was at least in part because they didn\’t ration by price: interest rates should have risen sooner in the face of an asset bubble.
So, having not used the known method of rationing by price they\’ve decided to bring in a known to be less effective method of rationing?