Infamous_Sympathy_91

Infamous_Sympathy_91 OP t1_ixyrie3 wrote

Delicate balance the BOE is keeping to ensure house price stability for long enough so that if they default the bank can seek to repo their loans with enough equity in housing stock to get paid back fully. However, banks know many people will default as a last resort on their homes, so will dig into savings and cut back.

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Infamous_Sympathy_91 OP t1_iueeig2 wrote

100% it's like bank analysts are writing up reports for their head teacher (the central bank)... and in doing so affirming their support that the FED and US government can control manage the US economy and geopolitical situation enough to hit the target of 2% within a relatively short amount of time.

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