The RBA and APRA better sort out what’s happening to the CoreLogic housing index quick smart because it is going nuts in Sydney and Melbourne:
Yet APRA recently said:
…some economists suggested APRA might need to step up its efforts to ensure banks are lending prudently.
But Mr Byres told an event at the Actuaries Institute on Tuesday that “it is all very well to say that 10 per cent cap could be a bit high, and you could lower it by a couple of percentage points – but actual growth in investor lending at present is down near 5 [per cent]. I could lower the cap to 7 [per cent], but I don’t know what difference that really makes.”
He added that the cap, initially announced in December 2014, was “always intended to be temporary [and] it is still our view that it will be temporary, so we are certainly thinking about the next evolution of what we do”.
Here’s what the RBNZ is doing:
