LONDON (Reuters) - Rapid rises in house prices could potentially crowd out more productive investment, but are not currently a key issue for setting monetary policy, Bank of England official Martin Weale said in an interview on Thursday.
"There are good reasons why one would regard rising and high house prices as likely to crowd out productive investment," Weale told newswire Market News International.
But he added: "In my current job I'm focused on what is going to happen to inflation over the next three years or so and from that perspective, the movements in house prices are less important."
Weale also said future moves in unemployment were likely to be unpredictable, but that he was more confident wage rises would remain weak even at "fairly normal" rates of growth.(Reporting by David Milliken; editing by Ron Askew)