Is Australia going to have to hike interest rates for Sydney and Melbourne?

Thursday 15 September 2016

It’s an academic question but there are three points to make that underline a major developing problem for monetary authorities.

The first is that, according to CoreLogic, house price gains in the two eastern capitals are overheating:

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If you believe CoreLogic, an outright buying panic has seized Sydney and Melbourne property.

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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.