Yea, but asset prices are not just influenced by current interest rates, but by the expectation of future average interest rates over the lifespan of the loan in question. It is the realisation that interest rates won't be going up any time soon which is driving asset prices, as much as the current interest rate and the (relatively) free availability of low interest loans to already asset rich buyers.

The other factor is that the increasing accumulation of capital by the 1% is resulting in a "savings glut" with little prospect of much of a return on any investment, let alone bank deposits.  Thus inequality in an of itself can drive asset prices higher leading to even greater inequality - until the next asset price bust in any case.  Most recent purchasers of property in ireland have been private wealthy individuals with no need to borrow in any case, or hedge funds with gazillions to spend in search of a big return.

Small businesses and mortgage buyers are still finding it difficult to get bank loans for working capital or home purchase. The banks are still sitting on a lot of money - hence the need for negative interest rates to encourage them to do what a bank should be doing in any case.

Index of Frank's Diaries