Government Policy Changes and Monetary Responses

This chapter examines recent shifts in government policy concerning residential property investments, such as increased stamp duty and tax alterations, and their impact on the perception of real estate as an investment. It discusses the tentative stance of central bank policymakers in light of fiscal stimuli and anticipated economic impacts, while contrasting the perspectives of the Bank of England and the Office for Budget Responsibility. The conversation also highlights global central bank responses, particularly the US and Europe, amidst challenges and uncertainties regarding interest rates and inflation.