Australian Property

Alas, there are many more housing “can kicks” possible

David Llewellyn-Smith
Thursday, 8 April 2021
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Domain continues its laudable series bashing the RBA today. It has good sources, especially our favourite, Gareth Aird at CBA, but, alas, I have to disagree with its conclusion that Australia has delivered its last “kick of the can” to house prices:

  • The RBA does care about house prices (mostly true).
  • Financial liberalisation is the key driver of the boom.
  • Gareth Aird says at zero rates the game is over.

The game might be over but it will be a political decision if so, not economic nor monetary.

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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.