IMF report includes research on why higher rates impact countries differently
On the whole the impact of higher interest rates on economic growth has been more muted than most expected but some countries have “felt the pinch” more than others.
Countries where fixed-rate mortgages are more common or where homebuyers are less in debt are typically more insulated from higher borrowing costs hence some countries have performed better than others in recent months.This was the gist of a piece of research, Feeling the Pinch? Tracing the Effects of Monetary Policy through Housing Markets included in the latest economic outlook from the International Monetary Fund , which was published ahead of the full report due out later today.
“Our results indicate that monetary policy has greater effects on activity in countries where the share of fixed-rate mortgages is low. This is due to homeowners seeing their monthly payments rise with monetary policy rates if their mortgage rates adjust,” noted an IMF blog explaining the research.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IMF chief Kristalina Georgieva secures second term after Paschal Donohoe links come to nothingBulgarian returns to role, with Minister for Public Expenditure and Reform to ‘continue work in Irish and European politics’
Read more »
IMF head says China at ‘fork in the road’ on reforms to boost demandKristalina Georgieva’s remarks at Beijing conference come as China export glut tensions rise
Read more »
Ivan Yates: ‘I could count on two hands the number of nappies I’ve changed’Parenting in My Shoes: ‘In terms of life, whether it’s politics, media, business, I firmly believe you have no legacy...Your family is your only legacy’
Read more »
Luis Rubiales faces 30-month jail sentence for Hermoso kissFormer Spanish football chief charged with one count of sexual assault and one of coercion
Read more »
AIB, EBS and Haven cut fixed Green mortgage rates by 0.2%AIB and affiliates EBS and Haven are cutting the fixed rates on their 'Green Mortgages' by 0.2%.
Read more »
Japan ends raises rates interest rates for first time in 17 yearsBank of Japan is last major central bank to end era of negative interest rates
Read more »