Following August’s Monetary Policy meeting, the Reserve Bank of Australia (RBA) has announced that the cash rate will remain at 0.10%, despite soaring house prices.
However, during the press conference following July’s cash rate announcement RBA Governor Philip Lowe revealed that the RBA is strategizing how to reign in the nation’s growing house prices. He said: “Housing markets have continued to strengthen, with prices rising in all major markets. Housing credit growth has picked up, with strong demand from owner-occupiers, including first-home buyers.”
Dr Lowe assured that the RBA was looking for ways to reduce the raging housing market, including limits on loan-to-value ratios and debt to income; and new interest rate buffers where borrowers are assessed against higher repayment levels.
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