Inflation is rising across the world for energy, food, and basic commodities. The reaction of the policy world is predictable: raising interest rates. What would interest rate rises do to our housing sector? The Central Bank’s Gerry Cross correctly pointed out the rise in mortgage arrears that would come from a sharp interest rate increase is not insignificant. In the short run, and in the real world, interest rises and inflation happens at the same time, doubly hurting households.  Monetary policy – raising or lowering interest rates in this case – is an extremely blunt tool when the decision is…

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