Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Housing bubble will force RBA to raise rates

By Staff Reporter
17 August 2009 | 1 minute read

The Reserve Bank of Australia (RBA) governor Glenn Stevens has said he will not hesitate to raise interest rates if he sees a bubble forming in house prices.

Advertisement
Advertisement

In his address to the House Economics Committee on Friday, Mr Stevens said the RBA would raise rates if it saw that a bubble fuelled by debt was threatening financial stability.

Mr Stevens said he is wary of the risks to financial stability caused from a surge in asset prices.

According to official data from the Australian Bureau of Statistics, house prices are still about 1.4 per cent below their peak a year ago, but recovered strongly in the June quarter, increasing by 4.2 per cent.

Housing bubble will force RBA to raise rates
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast

 

Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Boomerang Beach
66.67%
Gnarabup
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.