Australian interest rates Australian Property

The RBA is right. House prices are not its job

Thursday 3 December 2020

Phil Lowe yesterday in Parliament:

Speaking at a parliamentary economics committee meeting in Canberra, Dr Lowe said the aim of the bank in lowering borrowing cost was to “free up cashflow” for households to spend.

“It would be inappropriate for us to target asset prices,” Dr Lowe said.

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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.