The days of cheap mortgage deals or interest free loans may look like long gone. The prolonged low interest rate led to growth of unsustainable credit boom, leading to higher inflation. When the interest rates were increased, it led to collapse of the housing market and the interest rates are back to near zero levels. The unemployment is still very high for the comfort of governments. Is slightly higher inflation better than lower growth or should inflation be kept to a reasonable rate at the expense of growth?
