UK rates: No house price falls here, please

The Bank of England decided not to cut rates on Thursday. But that monetary toughness may not last. The UK central bank has a much more delicate task than the eurozone’s European Central Bank, which also kept its overnight interest rate flat. The Bank of England has to walk the fine line between (housing) bubble and (recessionary) trouble. A modest 0.6% month-to-month fall in the average house price in the UK, as reported by HBOS, suggests the risk. True, the average price is still up 5% over t...