BoE: house price rise does not mean economy boom

Bank of England deputy governor Rachel Lomax said the recent rise in house prices is not a sign that the UK is set for another boom in the economy.

'I think the fact that house price inflation has edged up, especially in London, doesn't necessarily mean we are on the edge of another great boom,' she said in an interview with the Daily Mail.

Lomax was also keen to reiterate that UK rate-setters are not unduly troubled by short-term rises in inflation, it is the outlook for inflation that counts. 'Today's high inflation doesn't necessarily mean tomorrow's high inflation' she said.