Feb 28 UK's property-market rebound is
beneficial for economic recovery and does not yet pose a risk of
overheating, Bank of England Chief Economist Spencer Dale told
Bloomberg in an interview on Friday.
"What we have seen in the housing market is one which has
moved from dormant to one which is functioning more like a
normal market, which I think has been good for our recovery,"
He told the media service that the increase in prices, sales
and mortgage lending has not risen to unsustainable levels as
transactions are still "well below" normal.
"Any of us who have lived through any sort of economic
history will know you can go from a healthy housing market to an
overheating housing market very quickly, and so our job is to
worry about those types of things and be alert to it," he said.
"We are fully alert to that risk and we are worrying about
it. But I do not think those risks are materializing at the
moment," Dale added.
Dale said the pickup in transactions will support demand by
spurring home building and construction, as well as purchases to
He said that with the formation of the bank's Financial
Policy Committee, in operation since April last year, the
Monetary Policy Committee is free to leave the key interest rate
at a record-low 0.5 percent for longer while the new panel
deploys macro-prudential tools to tackle risks to financial
If housing overheats, "the onus on us to do something about
it is less now. Quite rightly the initial onus would be on the
FPC. They are the first line of defense," he told Bloomberg.