“Mayhem” predicted as big house price “shakeout” looms

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Cross-posted from New Daily:

The Australian property market, overheated by ultra-low interest rates, faces a day of reckoning, senior economists have warned.

The Reserve Bank on Tuesday held the official cash rate at the historic low of 1.5 per cent, as expected. This marked the fourth consecutive month Australia’s central bank made no change to rates, since cutting them by 25 basis points in August.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.