Oil inventory levels are increasing, and supply remains high, so oil prices are unlikely to recover in the near term. 8  BIS central bankers’ speeches  •  Housing We will be talking more about the housing market over the next few months. Our concern about house price inflation is based on the risk it poses to financial stability and the broader economy.
Although it has not been a major factor in recent years, high rates of house price inflation can spill over into stronger spending and pressure on consumer price inflation. And the more that house prices get out of line with historic relativities, the greater the risk of a sharp correction, leading to financial instability.