Bank of England: Why Interest Rate Hikes Hit House Prices But Not Rents (Explained)

AI Economics Research Podcast · Aug 8, 2026 · 8m

This episode breaks down a new Bank of England research paper on how monetary policy impacts the housing sector. It explores why rising interest rates cause house prices to fall while rents remain stable for extended periods, and reveals the crucial role of individual landlords' behavior in this transmission. For more details, read the paper at https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2025/monetary-transmission-through-the-housing-sector.pdf, and share your thoughts at feedback@econpod.org. This episode explains a real academic paper in plain English for a general…