Joye: New house price party just getting started

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From Mr Joye:

The bottom line is that with more cuts coming, and APRA yet to reduce its 7 per cent serviceability test, the housing party is just getting started.

…It is, as a result, plausible that the RBA gets less than two-thirds of the lending rate reductions it would normally expect from a brace of standard cuts.

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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.