11 SEPTEMBER 1999, Page 34

The bell tolls

THE sound of a bell ringing could be heard this week from the Bank of England. Its Monetary Policy Committee unexpectedly made up its mind to raise interest rates, an example that the Halifax seemed sure to fol- low. The committee looks at more economic indicators that most economists could shake a stick at, but house price inflation is certain- ly one of them. Another house boom and bust is exactly what the British economy does not need, and if the committee is trying to head it off at the pass, it has the right idea.