Login
iscover
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.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
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.
Newsletter
