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PHOTO:\u00a0The Reserve Bank\u00a0<\/strong><\/p>\n The Reserve Bank has signalled that more cuts to the official interest rate could come although they advised of concerns of\u00a0refuelling a property bubble in Sydney and Melbourne.<\/p>\n The October meeting saw the\u00a0cash rate cut to a record low of 0.75 per cent.<\/p>\n The RBA board minutes noted “the housing market and other asset prices might be overly inflated by lower net interest rates”.<\/p>\n “This assessment would need to be reviewed if rapidly increasing asset prices were accompanied by materially faster credit growth, weak lending standards and rising leverage,” the minutes noted.<\/p>\n The members saw a limited risk of excessive borrowing.<\/p>\n Members acknowledged that asset prices were part of the transmission mechanism of policy, including by encouraging home building.<\/p>\n READ MORE VIA PROPERTY OBSERVER<\/a><\/p>\n