Quote:
Originally Posted by Azure
Other question, if things slow down quick, and inflation drops back in 3 months to more reasonable levels, are the interest rates lowered? We are at 2008 levels, and at some point you'd think they want to get out of the recession ASAP.
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I would suspect they want to hold the rate higher to get back to some semblance of control over monetary policy and have the ability to counteract future recessions. 2.5% is still a historically low interest rate and anyone who was stress tested should be okay on mortgages.
We also have at least until March 2023 of headline inflation rates being high just by the nature of year over year reporting.