Thursday, June 05, 2008
Bank on hold, house prices fall
Posted by David Smith at 02:00 PM
Category: Thoughts and responses

The Bank of England left interest rates on hold at 5%, as universally expected, probably in an 8-1 vote. The Bank is caught between a rock - the credit crunch - and a hard place, rising inflation.

The Halifax reported that house prices fell by 2.4% last month, similar to the Nationwide's 2.5% fall. It is a reflection of the shift in housing market sentiment that numbers like this are losing the power to shock. Extrapolating the 6%-plus price fall over the past three months gives some very scary numbers indeed.