Housing markets
US short and mid-term inflation expectations fall, says NY Fed
But housing price expectations rose 0.5% in January
Iceland raises rates again as inflation reaches highest level since 2012
MPC accelerates current cycle as experts point to problems in housing market
People’s Bank of China continues rate cuts
Cuts follow weaker growth figures as deputy governor promises stable credit growth
Tackling surging inflation
Central banks around the world are grappling with rapid price rises, with some taking very different routes to one another
RBNZ prepares curbs on debt service
Central bank is concerned by “very high debt” and “unsustainable house prices”
Fed warns of China debt risks
Financial Stability Report mainly optimistic about systemic health, including housing market
Bank of Thailand raises LTV ratio cap as recovery slows
Central bank says home loan measure has limited risks despite high household debt
Dallas Fed predicts 2022 core inflation above 2%
Economists expect auto and transportation costs to abate, but spike in housing prices
China’s financial market at risk of ‘distress’, RBA report warns
Authorities may have to choose between market discipline and intervention to save Evergrande
Larry Summers on stagflation risks, lessons from Delphi and never-ending ‘punch’
The former US Treasury secretary speaks about fiscal ‘overexpansion’, Fed/Treasury debt discord, the pitfalls of ‘unknown unknowns’ and central bankers ‘unable’ to remove the ‘punchbowl’
Goodhart, Gopinath and Lippi disagree on inflation
Central banks lack tools to deal with inflation, Goodhart warns, but IMF chief economist disagrees
RBNZ to tighten housing loan limits in November
“House prices remained unsustainable” despite earlier action, New Zealand governor Bascand says
RBA will not raise rates to cool housing market – Lowe
Governor says central bank is not responsible for fixing structural issues in the housing market
OCC issues $250 million penalty against Wells Fargo
US regulator says bank has failed to meet commitments on loss mitigation
South Korea raises policy rate
Governor cites rising household debts and house prices as reasons to tighten policy
The distant cry of hawks? Fed begins tightening talk
Richard Clarida gives a date for hiking interest rates, as debate on taper timing continues
Macro-pru mortgage limits were successful – RBA research
Central bank rates performance of policies implemented to cool risks in the housing market
Bank of Italy paper uses agent-based model of housing market
Limits on borrowing are effective but not currently needed for Italian housing sector
Danish central bank may tighten house lending rules
National Bank of Denmark recommends that FSA reimpose countercyclical buffers
Bank of Canada voices concern over house prices
Financial regulator imposes minimum rate on new uninsured mortgages
Book notes: The handbook of China’s financial system, edited by Marlene Amstad, Sun Guofeng and Xiong Wei
An important, comprehensive and informed overview of the current state of the Chinese financial system
BoE paper highlights link between mortgage limits and consumption
Authors find “new link” between down payment requirements and household consumption
Dallas Fed chief wants to talk about tapers
Comments may indicate split at Fed, though FOMC remains committed to asset purchases
Black applicants face US mortgage discrimination – Philadelphia Fed paper
Lower approval rate cost Black Americans more than $200 billion between 1994 and 2018