Furthermore, the response of household consumption to falling housing prices is uncertain. We know that consumption typically weakens as asset prices, and particularly housing prices, decline but the magnitude is difficult to forecast. And despite recent falls, housing prices still remain substantially above their level prior to the pandemic.
Let us not forget that the potential consequences of political interference in monetary policy remain valid regardless of whether inflation is either too low or too high. Political horizons are typically shorter than the time it takes for the effects of monetary policy to fully unfold.