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Old 06.02.2019, 00:57
yacek yacek is offline
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Re: Low Low interest rates -housing bubble? - inevitable price correction?

There are ways to increase the cost of money (including mortgage interests) indirectly.
https://www.nzz.ch/meinung/wege-hin-...ung-ld.1450173

NZZ lists 4 of them available to SNB:
1. selling assets held by SNB (I didn't know they were buying company bonds) thus increasing demand to borrow money from other banks.
2. paying interest on banks’ reserve balances (FED is doing it now) thus decreasing incentive for banks to lend
3. "SNB bills" - short-term bonds that pay a certain interest so that banks park their money there at a cost to the SNB/taxpayer
4. increase the banks minimum reserves

From all the above NZZ article says the SNB bonds are the most likely as they have been already tried out, despite potential public backlash - banks earning money risk free.
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