Joye: Bubble will prevent rate cuts

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From Mr Joye:

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Exploding house prices are turning into a real headache for the Reserve Bank of Australia, which for the last two years has been happy to blow the bubble and bugger the long-term consequences.

The latest data are breathtaking and do not require any hyperbole to highlight. They look bad in isolation and compared to the rest of the world.

Well, yes, but it’s been that way for ten years so it’s a bit late to worry now.

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.