Nonetheless, it is important to note that at 5 per cent, house prices are expected to grow faster than inflation generally in the next year, implying that there is still plenty of demand for housing. The suggestion that macro prudential measures can mitigate speculative forces in the housing market is not new.
Nonetheless, there is still an essential need for financial products and services that can help individuals and firms manage their risks, since sustainable economic development can only be achieved through sound risk taking by private entities. Moreover, financial institutions will be expected to play an even more active role as more countries face the problems arising from population ageing.