Yes, low interest rates certainly make it easier to borrow.
With respect to the housing issue particularly, when interest rates get very low, the effect on asset values becomes noticeably non-linear. It's geometric. I think that it's very realistic to say that low interest rates are responsible for some of the valuations we've seen in housing markets and have generated that momentum.
When interest rates go up even by modest amounts, I think we're going to see quite a marked charge in that area, for better or for worse. Much of the commentary here has been concerned about those high asset prices.
On the question about interest rate changes, they certainly do tempt people to borrow more. It makes saving less attractive. It makes consuming in the here and now a good deal more attractive. Part of the difficulty we are going to face as monetary policy tightens is that people are going to feel the pinch from those higher interest rates. That's why there will be concern among people generally who have floating rate mortgages or are otherwise exposed. The government is going to find that the cost of its financing is above what was predicted. It already is, with long bond rates where they are now.
There's going to be a certain amount of commentary saying that if only monetary policy would ease up, fiscal policy wouldn't have to be so tight. I don't look forward to that debate because it seems to me that inflation being low and stable really has to take priority. That's fundamental. You don't want to undermine that target because it makes it harder for the government to borrow.