2  BIS central bankers’ speeches  The fact that credit and housing prices rose together can be interpreted in several ways. Many believe that it reflects changes in banks’ willingness and ability to lend – arising, for instance, from excessively expansionary monetary policy, securitisation and reduced risk perceptions – that triggered property price bubbles across the world.
But it is also possible that rapid economic growth led households to revise up their expectations of future income and raise their demand for housing. Indeed, the macroeconomic environment before the start of a property bubble is typically highly favourable.