Article in Australian Financial Review overnight (does not appear to be gated): RBA ponders home lending risk limits
From the article:
- Treasurer Joe Hockey conceded on Thursday there were “clearly significant” price gains in parts of Sydney, Melbourne and “to some degree” in Brisbane.
- While expressing qualms about intervention to lean against price gains, Mr Hockey said “obviously the Reserve Bank will look at some of the macro-prudential issues”.
- The remarks imply regulators led by the Reserve Bank are under mounting pressure to consider measures such as loan-to-valuation limits adopted in recent years by countries including New Zealand and Canada.
Note also:
- The Reserve Bank has long questioned the efficacy of macro-prudential regulations
- Reserve Bank governor Stevens told a parliamentary inquiry early this year that one consequence in New Zealand was that first-time buyers were the first to be pushed out of the market
