In remarks to the House of Representatives Standing Committee on Economics in Canberra today, the chairman of the Australian Prudential Regulation Authority, Wayne Byres:
Macroprudential tools not “time critical” … more important to get the decision right
“We are still working through our options”
–
ps. – Also from that report:
- “Standard & Poor’s considers that a sustained and strong increase in property prices adds to the imbalances in the economy, in that it increases the risk of a rapid downturn in property prices, which could eventually destabilise the financial system and the broader economy,” the ratings agency said.
- “We believe Australian regulators will expand the use of macro-prudential measures to address the increased risk associated with strong growth in house prices, particularly with interest rates expected to remain low.
- “We believe that strong property price growth is typically an indicator of increased risk, and the surrounding fundamentals of soft employment and anaemic real wage growth heighten the risk.”
–
And, thanks to TomNZ for the earlier link, which I had missed
