Professor Philip Lane:

Every year, as part of the review of our mortgage rules, we review that.

The annual review that was completed in November concluded that the strong price increase we saw last year was still within the neighbourhood of what we might expect given the economic environment. That is not overheating. It is a balance between what is going on in the economy. This year, we expect employment to grow strongly and we expect wages to go up. We are not expecting serious interest rate movements this year. The economic conditions remain strong. That will support some movement in house prices.