Sunday, June 3, 2007
… they even mention us
"MPC's job is to keep inflation - as measured by the CPI, which excludes mortgage payments - as near to the 2 per cent target as possible. The MPC did not try to prevent the house price boom by lifting rates higher, so hard-pressed homeowners should not expect the committee to ease rates if house prices fall. The rental income of many investment properties does not cover the mortgage, but landlords have been happy to make up the shortfall as long as rising property prices will net them a profit when they sell. But once prices start to falter, buy-to-let will become a lot less attractive."