In a bid to alleviate property price inflation in Sydney and Melbourne, the RBA has not only held the cash rate at 2% for over coming months, but may also be relying on new lending controls from the Australian Prudential Regulation Authority (APRA), which would restrict the borrowing capabilities of housing investors. Although it is expected that such measures would minimise risks to the property market, it remains too early to predict their full effects, admitted a RBA representative.
In a bid to alleviate property price inflation in Sydney and Melbourne, the RBA has not only held the cash rate at 2% for three consecutive months, but may also be relying on new lending controls from the Australian Prudential Regulation Authority (APRA), which would restrict the borrowing capabilities of housing investors. Although it is expected that such measures would minimise risks to the property market, it remains too early to predict their full effects, admitted a RBA representative.