Comments from the ECB's Schnabel:
- House prices need more attention from financial stability and price stability perspective
- Owner-occupied housing would have contributed between 0.4 and 0.5 pp to a new, augmented HICP
- Monetary policy cannot turn a blind eye on loan growth in an institutional setting in which macroprudential policies are, in principle, the first line of defense but are not yet fully effective
- It's likely that large stock of ECB assets in conjunction with forward guidance will prevent an unwarranted tightening of long-term rates after QE
- In raising rates before ending QE, central banks would be willingly accepting losses on their balance sheets that would ultimately lead to losses for the average tax payer
- Significant uncertainty remains as to how persistent some of the current price pressures will prove to be
These are all good points.
