Monday, February 17, 2014
David Miles said “I see no bubbles”
Britain's housing market is not overheating but interest rates will not remain at record lows indefinitely, Bank of England policymaker David Miles said in an interview on Monday. Miles, a member of the Bank's Monetary Policy Committee, told Bloomberg Television the amount of slack in Britain's economy means there is no case for tightening monetary policy right now and that "overheating" was not a good word to describe the concerns about the rapid rise of the housing market prompted the Bank to announce in November that it would scrap the part of its Funding-for-Lending Scheme that supports mortgage lending. But the market is still underpinned by low interest rates and the government's Help-to-Buy mortgage guarantee program. He said the amount of slack is around 1.5% of GDP.