{"id":32255,"date":"2021-05-08T16:16:37","date_gmt":"2021-05-08T04:16:37","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=32255"},"modified":"2021-05-08T16:16:37","modified_gmt":"2021-05-08T04:16:37","slug":"rba-reluctant-to-raise-interest-rates-to-ease-soaring-house-prices-because-it-could-cost-jobs","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/rba-reluctant-to-raise-interest-rates-to-ease-soaring-house-prices-because-it-could-cost-jobs\/","title":{"rendered":"RBA reluctant to raise interest rates to ease soaring house prices because it could cost jobs"},"content":{"rendered":"

PHOTO: The RBA\u2019s Guy Debelle says any inequality created by the soaring housing market should be tackled with policy levers other than interest rates.<\/span>\u00a0Photograph: Dan Himbrechts\/AAP<\/strong><\/p>\n

The\u00a0Reserve Bank of Australia\u00a0<\/a>will not raise interest rates to ease soaring house prices because tightening monetary policy could cost jobs, the deputy governor has said.<\/p>\n

In a speech on monetary policy during the Covid crisis, Guy Debelle noted house price growth was encouraging spending. He argued to the extent it was a \u201cdistributional\u201d problem \u2013 which can affect inequality \u2013 it should be tackled with other policy levers.<\/p>\n

The RBA has\u00a0dropped the official cash rate to a historic low of 0.1%\u00a0and engaged in a\u00a0program of bond buying\u00a0worth $200bn in total, after a $100bn extension in February, in response to the 2020 pandemic recession.<\/p>\n

Expansionary monetary and fiscal policy have resulted in better-than-expected economic growth and jobs recovery.<\/p>\n

Australian capital city house prices have surged\u00a0by double digits, including an 8.5% quarterly increase in Sydney where the median house price is now an eye-watering $1.31m.<\/p>\n

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