ECB QE stoking housing bubble in UK – Moody’s

FXStreet (Mumbai) - The quantitative easing program implemented by the European Central Bank is stoking a housing bubble in the UK, credit ratings agency Moody’s has warned.

A search for real yield amid historically low returns on cash is forcing money into residential property. On similar lines, Germany and Norway too are at a risk of the housing bubble.

“While bond markets have experienced a correction and yields on German sovereign debt climbed recently, they are still extraordinarily low. This has encouraged investment in the property market, which yields a higher return”, Moody’s analyst Anna Zabrodzka wrote, according to the FT.