LONDON, June 28 The Bank of England cannot and
should not control rising house prices in Britain, a senior
official at the central bank said in an interview published on
the website of the Daily Mail newspaper on Saturday.
The Bank of England said on Thursday it would impose its
first limits on how much most people can borrow to buy a home in
a bid to stem increasing levels of debt amid double-digit price
growth in the housing market.
"It is not our job to control house prices, nor can we
control house prices," Spencer Dale, the bank's executive
director for financial stability strategy and risk, told the
British newspaper. "They will be determined by the underlying
conditions of the market."
The BoE's Financial Policy Committee said on Thursday that
from October, it would only allow 15 percent of new mortgages to
be at multiples higher than 4.5 times a borrower's income, and
that all lending would be subject to extra affordability checks.
Dale said that people should consider the measures taken by
the bank "as insurance for the country's housing market."
"When people come to judge the success of this policy in,
say, two years' time, do not judge us on what has happened to
house prices, judge on whether we have controlled the levels of
The Bank of England governor stressed on Thursday that it
was debt levels not price rises that were the main target of the
measures imposed by the BoE's watchdog on financial stability.
(Reporting by Costas Pitas; Editing by Lisa Shumaker)