Inflation is expected to remain low for some time, but then to gradually pick up as labour market conditions strengthen further. One issue that has attracted a lot of attention of late is the housing market. The construction cycle has a bit more momentum than we expected earlier.
This is adding to the supply of housing in the country, which partly explains the slow growth in rents. The rate at which established housing prices are increasing has also moderated, although there remain some pockets where prices are increasing briskly. Credit growth and turnover in the housing market are also lower than they were a year ago.