Property the weak link as interest rates rise

We think that property markets are the weak link when it comes to the impact of tightening monetary policy. A modest rise in interest rates might only cause price falls in a few obvious candidates. But rates might have to rise only a bit further than we expect to cause more widespread falls. While this would not cause a second global financial crisis, it would still weigh on economic growth in the countries concerned and could cause interest rates to start falling again in some places.