Other people have simply paid down principal directly. Combined, all forms of mortgage payments – including the additional balances in offset accounts – reached a record high over recent months, despite repayments being deferred on around 8 per cent of housing loans (Graph 9).
“How Has the Monetary Transmission Mechanism Evolved over Time?” in Benjamin M. Friedman and Michael Woodford, eds., Handbook of Monetary Economics, vol. 3. Amsterdam: Elsevier, pp. 369-422. - 13 Brand, Claus, Marcin Bielecki, and Adrian Penalver (2018). “The Natural Rate of Interest: Estimates, Drivers, and Challenges to Monetary Policy,” Occasional Paper Series 217. Frankfurt: European Central Bank, December, https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op217.en.pdf?57d8cac4d66960cce deb5c2a59dd46cd. Bullard, James (2018).