BoE's Cunliffe says seeing evidence of slowdown in housing market

Reuters recently reported on the Bank of England Deputy Governor Jon Cunliffe speaking on Wednesday who said that the central bank was seeing evidence of a slowdown in the housing market.

"We see evidence of a slowdown in the housing market. There are some straws in the wind that show the market is starting to turn," Cunliffe said in an interview with ITV News.

"The Bank expects the economy, that’s already slowing, and we expect it to slow further, to slow quite a lot over next year or so. And I think that will have an impact on the housing market."

Key notes

• Says we see evidence of a slowdown in the housing market.
• Says we have to ensure that the inflation we are seeing in the economy now doesn’t become the new normal.
• Says interest rates may well have to rise further.
• Says I don’t think we’re heading back to the interest rates of the 1990s.
• Says I am certainly not predicting a crash in house prices.

GBP/USD update

GBP/USD is starting to correct higher and 50% mean reversion to restest old support at 1.2524, May 25, could be on the cards which would be mitigating some of the price imbalance left behind following the recent bearish impulse: