The latter, by itself, reduces quantities but decreases prices as the equilibrium shifts down along the supply curve. So what’s happened to the interest rates borrowers are actually paying? The Securitisation Dataset provides estimates for both owner-occupiers and investors. There has been a modest broad-based decline in outstanding mortgage rates in the Securitisation Dataset over the year to August (Graph 5).
*  *  *  Ladies and gentlemen, Mr. Papademos, the new Vice-President of the ECB, and I will now report on the outcome of today’s meeting of the Governing Council of the ECB. The Governing Council undertook a comprehensive examination of monetary, financial and economic developments and considered the evidence that has become available since its last meeting on 2 May 2002.