Can the Bank get Britain to kick its cheap credit habit?

Low interest rates, high house prices, new car deals and low-cost credit cards make an explosive mixture – which regulators may struggle to keep a lid on

One thing sure to upset Bank of England officials is any suggestion that the Old Lady of Threadneedle Street has gone soft on the banking industry and turns a blind eye to reckless lending. It brings back disturbing memories of the 2008 credit crunch, the chaos it brought to the economy and the damage it caused the institution’s reputation.

Last week, the Bank of England, which has become the overarching regulator of the banking system, made a point of being tough on the banks following the publication of its latest financial stability report.

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