So what does the central bank do then.
I am not an economist by any means but it seems like they're damned if they do and damned if they don't.
Keep interest rates low and and people continue to borrow too much money and they become overwhelmed with debt. Or raise interest rates and all these homeowners who are already over-leveraged won't be able to withstand the rise in their monthly mortgage payments.
I guess this is what the stress test is supposed to prevent but there are many people who got their mortgages before that was implemented so I imagine they will be the ones to get hit the hardest with even modest interest rate rises.
I suppose the banks don't care and want to keep interest rates low.
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