Banker: Rapid house price growth “fantastic”. Don’t regulate.
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Bendigo & Adelaide Bank’s net profit for 2020-21 rose 172% to $524 million, with its cash earnings rising 51% to $457.2 million. Deposit growth increased by 14.2% whereas applications for loans surged by 36.2%.
Commenting on the current heat in the housing market, MD Marnie Baker said that rapid price growth is “fantastic” and claimed that macro-prudential regulation is not needed as activity is being driven by owner-occupiers rather than investors:
Rapid house price growth over the past year had been “fantastic for the economy”, she said.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.