Thursday, December 06, 2007

The Rise and Fall of the House of Threadneedle Street?

Where was the pressure on the Bank of England to curb house price increases by raising interest rates in the last couple of years?

The Bank of England should resist pressure to cut interest rates to protect housing wealth as it is responsible for keeping non-asset inflation at 2%.

Even so, it will be difficult for the MPC to ignore house price declines when the committee all own houses!

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