While the interest rates on time deposits have increased alongside the policy rate, the widening of the spread between overnight deposit rates and policy rates is in line with what has been previously observed during interest rate hiking cycles. Partly this is because overnight deposits offer payment services that are not explicitly priced.
Some preliminary calculations suggest that the total of equity extractions from unrealized capital gains on homes that is spent on consumer goods and services per dollar of capital gains is a fraction of the  1  The realized capital gain on a home sale in recent years has engendered a net increase in the mortgage debt (that is, net equity extraction) on that home averaging nine-tenths of the capital gain.