None of the measures announced by the Financial Policy Committee (FPC) last week seem likely to sap the recovery in house prices of its current momentum or prevent the overall level of household debt from rising markedly.
Admittedly, there are still a whole series of actions the FPC could take in the future if the housing market gets out of control. Nonetheless, the timidity of its actions so far and the UK’s long history of housing market excesses suggests that it would be foolish to discount the prospect of the MPC having to cool the market with interest rate rises further down the line.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services