LONDON Feb 17 Britain's housing market is not
overheating, and if it does the Bank of England would only raise
interest rates as a last resort, Bank of England policymaker
David Miles told Bloomberg TV on Monday.
Concerns about the rapid rise of the housing market prompted
the Bank of England to announce it would scrap the part of its
Funding for Lending Scheme that supports mortgage lending in
November. But the market is still supported by low interest
rates and another government scheme.
"We do have, as the last line of defence, the blunt
instrument, the big stick of interest rates," Miles said.
"If you did get into a situation where the tools that the
Financial Policy Committee have seem not up to the job of
stopping overheating in the housing market, we would then turn
to the blunter instrument of using Bank Rate. We're a long way
However, Miles added that British interest rates would not
remain at their current very low level for years to come.