She said that prices were above average in terms of indicators such as house price to earnings ratios or loans to incomes ratios, but said that in the current environment that was hardly unsurprising.
She continued that she expected to see prices slow without the need for interest rate hikes as first time buyers were increasingly finding property hard to afford.
She appeared to rule out the danger of a crash in the housing market by saying that big rises in interest rates were unlikely in a world of low inflation.
She said the MPC would never target or try to counterbalance house prices, but that it was examining the effect of stronger house prices on people's spending over the second half of the year and balancing that against the potential negative effect of the fact that people will be aware their stock market holdings have fallen."
