karhu Report post Posted January 20, 2006 http://news.bbc.co.uk/1/hi/business/4630902.stm Mortgage lending showed unexpected vigour in December, according to the Council of Mortgage Lenders (CML). The CML said that mortgage lending totalled £26.3bn, 25% higher than during the same month in 2004. Quote Share this post Link to post Share on other sites
zorn Report post Posted January 20, 2006 http://news.bbc.co.uk/1/hi/business/4630902.stm And let's not forget that remortgaging was going down in the second half of 2005, so this is presumably new lending for house purchase. Quote Share this post Link to post Share on other sites
karhu Report post Posted January 20, 2006 (edited) And let's not forget that remortgaging was going down in the second half of 2005, so this is presumably new lending for house purchase. Yes you're right. The MPC has obviously underestimated interest rates. They need to increase them by 0.25% immediately. I don't see why the MPC can't undershoot the inflation figure if they think there are long term stability risks. Edited January 20, 2006 by karhu Quote Share this post Link to post Share on other sites
