guckuck2
2022-04-05 12:22:04
- #1
Interest rates excluding ECB (at exactly 0.0% for 6 years) are hardly moving, agreed. But the mortgage market rates in the current environment are a different beast: according to Dr. Klein, the 10-year loan rates have risen in the last 12 months from about 0.5% to currently just under 2%. Against that, the ECB at 0% can do nothing – IT has used up its powder!
The key interest rate has long been exhausted as a mechanism. Then came bond purchases. These can be expanded, both in quantity and type. But that also is finite.
At the moment there is simply a lot of speculation, see energy prices. The supply quantities have not changed, it’s all just in people’s heads.
There isn't a shortage of flour just because there is no more available.