In a bid to alleviate property price inflation in Sydney and Melbourne, the the Australian Prudential Regulation Authority has not only held the cash rate at 2% for three consecutive months, but may also be relying on new lending controls from RBA (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 the Australian Prudential Regulation Authority 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.