Hot housing market needs to cool off before rates rise
Outlook "As one of the fastest growing economies in Europe we always listen to the Commission's recommendations with interest," was the response of a government source to a telling off from Europe over the economy.
In other words: yah-boo sucks to you, Brussels; keep your concerns about our housing market to yourselves. Just a day later the Markit/Cips services purchasing managers' index appeared to justify that stance. The economy's dominant sector is booming, with hiring at a 17-year high.
The Government might pooh-pooh Brussels's concerns, but the Bank of England isn't so blasé. It's already intervened once in an attempt to apply some coolant to the market, by forcing banks to take a much harder line when they assess clients' ability to repay their loans.
If that doesn't work, and I question whether it will, can an interest rate rise be far behind?
The bank is right to be cautious. It's also true that a scarily large number of people are still only just making their repayments, even now. Household budgets remain under pressure. The political consequences of a rate rise putting them under further strain could be severe (and watch out, Tesco).
But there are risks to not acting, and they're increasing. Economists still don't expect the Bank of England to raise interest rates until the middle of next year. At this rate they might just have to revise their forecasts.
It might just be the time for the hawks on the Monetary Policy Committee to show their talons.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 3 WrestleMania 31 results: Seth Rollins stuns WWE as he cashes in Money in the Bank contract to claim title from Brock Lesnar
- 4 Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
- 5 Germanwings plane crash: I have depression. That doesn't make me a psychopath
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Germanwings plane crash: Investigators may have already found remains of suspected killer co-pilot Andreas Lubitz
Children take eight Isis captives to be beheaded in latest propaganda video
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...