These failings have had a detrimental and, in some cases, devastating impact on many tracker mortgage customers, up to and including the loss of homes and investment properties. It is clear that all lenders did not sufficiently recognise or address the scale of those failings until intervention by the Central Bank.
Still, as central bankers, we need to take market anxiety, and the volatility it creates, seriously, regardless of the source. Although volatility can go both ways, “market volatility” is usually code for “market declines,” which can erode consumer and business confidence and cause a weakening in economic fundamentals.