Photo / Doug SherringOriginally published by The SpinoffSuper-low interest rates are a blessing to those already on the housing ladder. Various media reports quoted industry reps celebrating the milestone: "Homeowners are reaping the huge benefits of low interest rates," one said. With interest rates this low, there would be far more people going to auctions and making outrageous bids. This is essentially why low interest rates have such serious implications for inequality. "So the actual choice set that the central bank has to have much higher interest rates is going to be limited by the interest rate prevailing overseas.

Source: New Zealand Herald October 22, 2020 06:47 UTC