A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022.
REUTERS/Maja Smiejkowska/File Photo Acquire Licensing RightsCompanies Bank Of England FollowLONDON, Sept 13 (Reuters) - The government should check that insurers are spending up to 100 billion pounds ($125 billion) on Britain's economy after their capital rules were eased, Bank of England Deputy Governor Sam Woods said on Wednesday.
"I think it may happen, but I can't guarantee it," Woods told a sub-committee of parliament's Treasury Select Committee.
The finance ministry overrode the Bank of England to ease some capital rules more than Woods had wanted, which could make an insurance company failure more likely.
This means insurers will have more money to invest, currently only a modest part of their portfolios is in infrastructure, Gerken said.
Persons:
BoE, Maja Smiejkowska, Sam Woods, Woods, Charlotte Gerken, Gerken, Huw Jones, Alexander Smith
Organizations:
Bank of England, REUTERS, Bank, Association of, Thomson
Locations:
London, Britain