Housing investment in the euro area is expected to be weighed down by higher borrowing costs despite recent resilience, according to ECB research
While the impact of higher borrowing costs has been less pronounced than in the US, “the negative effects of the increase in monetary policy interest rates in the euro
area are likely to intensify over time, given the estimated lagged effects of monetary policy,” ECB researchers Niccolo Battistini, Simona Delle Chiaie and Johannes Gareis said.
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