@rationanalytics@alexgroundwater M4 and house prices are highly correlated almost by definition because the majority of M4 is created by banks when they lend against housing.
It’s a separate question whether housing is in a ‘bubble’.
@rationanalytics Yes, there is a lag, and the NIM is targeted. The problem is that savers are subsidising borrowers, the rate on mortgages is not a fair market rate
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