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Australia central bank needs to see period of housing market moderation: Lowe
[SYDNEY] The Reserve Bank of Australia (RBA) will need to see a period of moderation in the property market even though it does not target home prices as part of its policy mandate, Governor Philip Lowe said on Wednesday.
Mr Lowe said the financial threats facing the economy were gradually abating as house prices have declined in the largest cities while borrowing by property investors has slowed "considerably." There has also been a tightening of credit standards by banks.
"This change in financial trends has helped reduce the build-up of risk," Mr Lowe said in a speech in Sydney.
"It is helpful that this change is taking place at a time when the world economy is growing strongly, the unemployment rate is trending lower and the economy is recording good growth."