Private Debt, Monetary Policy, Tightening and Aggregate Demand

The sensitivity of demand with respect to the policy rate has somewhat moderated. Household debt, private debt more generally, and in some ways, especially corporate debt has lengthened in maturity. So unless you have long-term rates really jumping around, shifts in the policy rate tend to have less of an effect. But it certainly does seem that there are some mitigating factors here to mean that even though that has increased, the vulnerabilities may be lower.