[ad_1]
The Reserve Bank of Australia (RBA) has clearly moved away from its responsibility to control home prices and has taken over to government and industry regulators.
so Online addressRBA Governor Philip Lowe said raising interest rates would address home price concerns at the expense of other areas of the economy.
“I want to make it clear that this is not our agenda,” Rowe said. “Higher interest rates, if all other conditions are the same, will certainly lower home prices, but they also mean less employment and lower wage growth.”
“This is an inadequate trade-off in the current situation.”
He said the central bank is closely monitoring the financial regulators’ council and the real estate market, discussing possible regulations if lending standards fall or credit growth accelerates rapidly.
“Currently, monetary policy is contributing to higher home prices, but the way to address these concerns is through structural factors that affect the value of the land on which our homes are built.” Said Rowe.
Structural factors include tax and social security systems, planning and zoning restrictions, and types of housing under construction.
“These are all clearly outside the territory of monetary policy and the central bank,” Rowe said, separating the RBA from responsibility for housing regulation.
“Our job is to reach the inflation target and help return to full employment in Australia,” he said.
The Australian real estate market has skyrocketed 18.4% in the last 12 months after the Reserve Bank of Australia cut its cash rate to 0.1% in November.
Since then, the RBA has maintained low cash rates despite pressure from the real estate industry, banks have closely monitored the market, and many statements have stated that interest rates will remain low for the rest of the economy. I’m paying the same attention.
Real estate researcher CoreLogic said future policies on the housing market could focus on household debt rather than the industry’s 2015 and 2017 policies on investment and interest-only lending. I think it’s expensive.
“Net investment credit growth has increased, but is below average and, in fact, has been declining in the two months to July,” said CoreLogic Research Director. Tim Lawless said.. “On the other hand, credit growth in homeowners has tended to be high since June 2020, above the 10-year average since November last year.”
The RBA’s comments came after the New Zealand Government stopped the booming real estate market by implementing a series of policies, including hitting investors’ income with taxes in March.
[ad_2]