Are the comments of Bank of England Governor Mervyn King equal to a 25-basis-point rise in interest rates?
Several commentators suggest that two rises of 0.25 per cent over a period of months have had much less psychological impact than one of 0.5 per cent. One says the property boom requires a much bigger rise to deliver a shock. It is unlikely many lenders or brokers would agree. The housing market can be talked down and if anyone can do it, it may be the Governor. Let's just hope whatever the reason – rates, comments or fundamentals such as first-time buyer affordability – that the landing when it comes is soft and not a hard one.