Wednesday, September 30, 2009
Well, what did they expect if they slammed the base rate into the floor.
The Bank of England has been taken aback by the recent rebound in house prices and is watching the market carefully for any signs of excessive 'exuberance'. The Mail understands that chief economist Spencer Dale yesterday told economists the strength in property values had been surprising. Officials would start to get worried if the revival gets out of hand, he said, although we are not there yet. This comes only a week after Dale said in a speech that the Bank's money-printing programme could lead to 'unwarranted increases in some asset prices that could prove costly to rectify'.