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Nowadays, low lending rates have made the forward price less attractive.
As in Spain and Ireland, a spectacular bubble developed in the housing market, fuelled by excessively low lending rates, an "anything goes" mentality among lenders and lax regulation.
That without the support of the Bank of England's quantitative easing programme, and its very low lending rates – all effectively backed by British taxpayers – Britain's banks would effectively be insolvent.
Germany has benefited from the European Central Bank's low lending rate of 1 percent, a benchmark that is set with the euro zone as a whole in mind but is probably too low for German conditions.
William A. Ryback, the new deputy chief executive of the Hong Kong Monetary Authority, which essentially functions as the central bank here, said at a news conference on Wednesday evening that low lending rates would have "some effect" in crimping banks' profit margins, but added that he was not concerned.
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That is, rates paid to depositors remain low, and lending those deposits to home buyers remains profitable.
Mr. Walker said fears of a property bubble were probably unfounded, because of low bank lending and a young population requiring housing.
In college student newspaper advertisements, on social media platforms and in town hall meetings, Democratic lawmakers cast themselves as the saviors of low, subsidized lending rates, battling Republicans intent on subjecting college loans to the whims of the financial markets.
Banks make money borrowing low and lending high.
"In order for credit unions to be sustainable and continue to provide this service it must focus its current resources in attracting higher value loans to cross-subsidise the cost of low value lending," he said.
The vote, based on the Bank's carbon policy, is meant to weed out high carbon intensity projects and promote low carbon lending.
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