NAB dismisses APRA’s wet lettuce macro-prudential

Wednesday 17 June 2015

NAB head of retail banking, Gavin Slater, has all but dismissed the Australian Prudential Regulatory Authority’s (APRA) soft 10% cap on investor mortgage credit growth, claiming it will have minimal impact on house prices, which are being driven by strong demand via population growth and foreign investors, along with a lack of supply. From The AFR:

“I don’t think where we’re heading, around looking to moderate growth to under 10 per cent, at an industry level, will have a significant impact on asset prices themselves, but that’s not the intent of the action”…

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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.