March 16, according to the Wall Street Journal Chinese website news, the Reserve Bank of Australia expressed unease over the soaring housing prices, but also said that for the time being will not intervene.
The Reserve Bank of Australia is refocusing its attention on soaring home prices, but sees no reason yet to intervene to cool the property market, saying record-low interest rates will strengthen, rather than undermine, the stability of the financial system, the report said.
“The policy board considered that a stronger economy was more conducive to financial stability, while also recognising the importance of closely monitoring asset market risks,” the RBA reportedly said in the minutes of its March 2 policy meeting.
The report also said that Australian home prices have now returned to record highs. Real estate research firm CoreLogic says February saw the biggest monthly gain in 17 years.
“The committee recognises the risks inherent in investors seeking yield in a low interest rate environment, including those associated with higher leverage and asset prices, particularly in the housing market,” the RBA said. (APP)