They argue that the Bank is obsessed with inflation at the expense of economic growth and job creation. At the current level of the inflation rate, this implies that an inflation rate of 8% is too low to be treated as a serious concern.
Today, the rule is that if the value of the property declines, and the covered bond loan then exceeds 80 per cent of the property value, the issuing mortgage-credit institute has to find additional collateral for the mortgage. I see little likelihood that it will be possible to requirement. And I doubt that it would benefit Danish mortgage credit in the longer run.