I’ve highlighted it before on these pages but it’s perhaps timely to raise the point again ( Jim did so very eloquently yesterday) that the UK housing market rise is continuing to cause tension within the UK coalition as well as concens at the BOE.
In the wake of yesterday’s latest data which saw the pound rise again in our European morning session Lib Dem and Business Secretary Vince Cable has once again come out strongly against PM Cameron’s assessment by saying that house price rises “must stop”
The Government has done really good work turning the economy around: we can’t now risk it being derailed by a housing bubble repeating the mistakes of Gordon Brown
If we are going to get a recovery it has to come through exports and British industry, not property inflation.
He also said that he feels the BOE are getting ready to act to stem the rise as a precluder to raising interest rates
It’s not my job to tell them what to do, but I get a sense that the Governor of the Bank does understand this is a serious problem.
The issues will continue to dominate the front pages this week as keynote speeches are scheduled.
The Telegraph has more here
