And they do not depend solely on inflation – or inflation expectations, to be precise – but also on the real interest rate, which is driven primarily by growth expectations. After all, it is ultimately enterprises and house builders, of course, that pay interest. And they can only do that if they are in a good economic position.
Only then are lenders – meaning banks, savings banks, mutual funds or private investors – in a position to charge higher interest rates. Unfortunately, however, longer-term growth expectations are not as upbeat as they were a few years ago. This is partly because growth in some countries was driven by excessive lending before the crisis.