Britain's once-booming housing market is moderating, Chancellor of the Exchequer Gordon Brown said on Thursday. "House prices are moderating and there is an adjustment in house prices taking place," Brown told parliament. He also said there was no significant convergence yet between the British and eurozone economies.
"(To contemplate joining the eurozone) we would need a British and European economy that was more flexible and we need to have sustainable convergence. It is clear with our large differential in interest rates, we don't have that) at the moment," Brown said.
The Bank of England has ratcheted up official borrowing costs to 4.75 percent, in 1/4 point degrees, over the last year. The European Central Bank's rate for the eurozone stands at just 2 percent.
Last year, he ruled out Britain adopting the eurozone for the foreseeable future. Political insiders expect no such move for years now.
"We will come to this issue in the budget next year," Brown said. "If we thought it was right to pursue another assessment we would make another assessment. If we think it's not right to do so, we will not."