Housing in the Euro Area

IMF’s latest report on the Euro Area says that: “Credit and house price growth are moderate, but pockets of risks suggest that countries need greater flexibility in activating macroprudential tools in a timely manner. Although credit growth has picked up, credit gaps are negative in many countries. At the same time, overvalued residential and commercial real estate prices in a few countries suggest a potential need for the nimble application of macroprudential instruments (…). To ensure timely actions, the authorities should reduce the onerous process of notifications for increasing banks’ risks weights on mortgages to curb housing-related macroprudential risks, which currently could go all the way to the European Council.”

 

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Posted by at 2:30 PM

Labels: Housing

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