If more evidence is needed by the Bank of England and by some the bloggers to this site that things are slowing down rapidly, it has come tonight in figures showing mortgage approvals down by more than a third and house prices falling, on top of the evidence of larger falls in commercial property.
The Bank of England has let it be known it will make more money available to the money markets ahead of the year ends for the leading banks. That is welcome – better late than never. The Bank should also realise that conditions remain very tight, and interest rates remain too high for the conditions. Every bank is going to want to show a strong balance sheet with good liquidity over the year end, so there will be a scramble for cash and for smaller stronger balance sheets. That is not the background to higher inflation!