As incomes accrue to these previously jobless or underemployed households they are lifted out of poverty and hence the incidence of poverty falls. This is exactly what happened in Pakistan until 1988/89 and that is what is happening at present. Sixty per cent of our population relies on agriculture directly or indirectly.
Those lending to such households also need to take into account the rise in rates when they judge credit worthiness. Households and those that lend to them also cannot count on large increases in house prices persisting. Rising rates are sure to cool the housing market, and possibly could cause prices to soften in some localities.