DN clean panel advises against rate cuts, fearing overheated housing market. For low residential taxes “as a shackle” on interest rate policy, believes Professor Ragnar Torvik, according to the newspaper.
– Lower interest rates now will stimulate greater activity in the housing market and the high growth rates continue, and it will make us more vulnerable in the long term, says Professor Hilde Bjørnland who believe interest rates should remain unchanged.
– It is quite possible that interest rates will go down, but it is not urgent to lower interest rates now, says senior economist Kjersti Haugland.
Professor Ragnar Torvik NTNU believes interest rates should be cut now, but fear also that the housing market will be lit further.
– All economists and politicians agree that we must have a change away from oil-related activities. We can use the interest rate, but the disadvantage of using interest rates are not shut out of the housing market. That monetary policy escapes in the housing market is because it has been so profitable housing investment. To maintain favorable property taxes that we have now set as a shackle for monetary policy, and it allows you to fight the business cycle more need to use fiscal policy. When you get more capital than you would enter the housing market, a more expansionary fiscal policy than you should have, and we are not getting the restructuring we would like, says Torvik to DN.
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