Summary
THE Bank of England's decision to raise interest rates last week was widely expected, but the accompanying Monetary Policy Committee (MPC) statement underlined the fact that the housing market will cast a large shadow over the remainder of the year.
The MPC believes consumer spending is being supported by "unexpectedly strong house prices", through mortgage equity withdrawal (MEW), where households liquidate past gains in the value of their property and effectively realise a proportion of their housing wealth.See the full content of this document
Extract
Economic Commentary From the Royal Bank of Scotland Group
This trend has been particularly s...
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