BoE Governor dismisses crash fears

Sir Edward George, governor of the Bank of England, has dismissed fears of a dramatic fall in house prices.

Speaking to the BBC last week, Sir Edward said that recent forecasts, which have predicted drops in prices of up to 30%, could not be relied upon.

He said: “You shouldn&#39t put too much weight on surveys, at this time of year in particular,”

Instead, Sir Edward foresees a gradual moderation in house price growth.

He says: “You&#39ve got to keep things in perspective. I don&#39t think there&#39s a general perception that there will be a crash.”

Sir Edward admits that a big slowdown in consumer spending is an economic risk. , whose second five-year term of office ends on 30 June 2003, also forecast a gradual slowdown for consumer spending.

But he admitted there are risks facing the UK economy, including the danger that consumers would “cut back on spending more than we&#39d like to see”.

Sir Edward leaves his role as governor in June 2003, when his current deputy Mervyn King becomes new governor of the Bank of England.