And, finally, with household debt at high levels, the economic effects of interest rate increases could be different than in the past. In our deliberations for yesterday’s decision, we took stock of recent developments related to these issues. As job creation has absorbed slack in the labour market, we have started to see wages pick up.
With respect to the impact of higher interest rates on housing markets and the economy, although it is still too early to make a full assessment, we have seen a deceleration in household borrowing. And while it’s also too early to tell how much additional potential output in the economy is being created, last week’s strong investment figures are encouraging.