Minutes from the Financial Policy Committee meeting on 18 Sept
- any action on housing would be proportionate and graduated
- will keep and close eye on house price developments
- will be vigilant on bank underwriting standards
- made no new policy reccommendations at the meeting
- higher market interest rates haven’t impacted financial institutions according to preliminary research
- regulators to look more closely at hedge fund leverage as part of risk assessment of eventual rise in interest rates
More evidence that the house price increases in the UK, albeit isolated to certain areas, continue to be of concern.
And rightly so, given that the it was free money/120% mortgages that drove up house price equity ever higher fuelling the boom in the rest of the economy, and hence rapid bust when it all went pear-shaped.
Lessons must surely be learnt. But somehow I don’t think they will.
