MPC representative says housing market ‘resilient’

The housing market in the UK is unlikely to be affected by the global crisis in financial markets, according to a member of the Monetary Policy Committee, the group that sets interest rates.

Kate Barker said developments in the financial markets should not provide a “trigger which significantly alters previous expectations of continued robust house price growth.”

Ms Barker added that a “major weakening in the housing market” wouldn’t have much of an impact on consumer spending and would not lead to higher unemployment or a deterioration in expectations of future incomes.

The comments from a key member of the Monetary Policy Committee are likely to raise expectations that interest rates will be held for the time being. Ms Barker has a history as a swing voter on the committee.

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