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Miles Says ‘Big Stick’ of Rate Hike Too Blunt for Housing Market

Bank of England official David Miles said policy makers will only use interest rates as a last resort to cool Britain’s housing market if it begins to overheat.

“We do have, as the last line of defense, the blunt instrument, the big stick of interest rates,” Miles said today in a Bloomberg Television interview with Guy Johnson in London. “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 from that.”