Cable warns rates may have to rise to tackle 'raging housing boom'

Business secretary Vince Cable has warned interest rates may have to rise to hold back a "raging housing boom" in London and the south-east.

Speaking on the BBC's Andrew Marr Show, he said if interest rates were not increased by the Bank of England, there was a danger that large parts of London could end up being inhabited only by foreigners and bankers as house prices spiralled. He added that, on the other hand, if interest rates were increased it would have a negative impact on UK manufacturing since exchange rates would rise, making exports harder. It is the first time Cable has spoken so openly about the possibility of interest rates rising due to the imbalance in the economic recovery. He again called for the gover...