(CU)_Global house prices are on the rise. According to official figures, in many countries, they have been increasing at their fastest rate in many years despite their economies being gripped by a pandemic. Therefore, with the memories of the global financial crisis which was triggered by the housing frenzy, in mind, policy maker are now looking at how to keep a grip on soaring house prices while avoiding any threat to the post-pandemic economic recovery.
Accordingly, setting policies to keep homes affordable for regular workers will be at the top of the agenda in the meetings of central bankers this week. The Bank of Canada, which has already shifted to a less expansionary policy, is now facing criticism for its role in surging housing prices, and hence, another round of tapering is expected at the central bank’s meeting on Wednesday (14 July). On the same day, policy makers from New Zealand are set to meet to discuss their battle against the hottest property market in the world, according to the Bloomberg Economics global bubble ranking.
Last month, the Bank of Korea also warned…
