RBA Warns Over Aussie Housing Risks as Global Reflation Emerges
ByAustralia’s central bank highlighted threats in the property market and an acceleration of domestic household debt even as it lent credence to the global reflation story.
“Data continued to suggest that there had been a build-up of risks associated with the housing market,” the Reserve Bank of Australia said in minutes released Tuesday of this month’s meeting where it held interest rates at a record-low 1.5 percent. “Growth in household debt had been faster than that in household income.”
The RBA’s warning comes as the economic divide in Australia sharpens with house prices more than doubling in Sydney since 2009 and Melbourne’s similarly surging as investors tap cheap money. Meanwhile in the west, the heart of an unwinding mining-investment boom, property prices are falling and businesses are going bust as demand is weak…
RBA Warns Over Aussie Housing Risks as Global Reflation Emerges
