Is the RBA to blame for housing speculation?

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ScreenHunter_12 Sep. 23 12.54

By Leith van Onselen

Former RBA board member, Professor Warwick McKibbin, has delivered the RBA a serve, blaming the central bank’s ultra low interest rate settings for fuelling unprecedented investor housing speculation, and blowing a potential housing bubble. From The Australian:

Professor McKibbin said the bank had made the wrong call to cut interest rates so low and was facing the consequences.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.