4 ms·
Probably the 'natural' interest rate (where resource allocation accurately prices risk) is around 5%, based on history. To successfully fight inflation, likely
by somewhereoutth 4y ago
Probably the 'natural' interest rate (where resource allocation accurately prices risk) is around 5%, based on history.
To successfully fight inflation, likely rates will need to be somewhat higher than that for a period.
- moistly 4y agoI have read that Canada’s house prices have increased by an average 7% per year for quite a few decades. A 5% mortgage would reduce profits on sale to 2%, I think, which is around the target inflation rate.