Fear over house prices prevented interest rate cut

UK - Fear of stoking the overheated housing market was one reason why the majority of the members of the Bank of England's rate-setting monetary policy committee decided against an interest rate reduction last month.

Marian Bell, who joined the committee in June, said yesterday analysts were wrong to assume that it would follow the US Federal Reserve if the Fed decided to cut rates next week.

If anything, a Fed rate reduction would take the pressure off the committee by boosting global demand,