PHOTO: The Reserve Bank of Australia considered asking private firms to stop telling Australians about slumping property prices.
The Reserve Bank of Australia (RBA) considered asking private firms to stop telling Australians about slumping property prices, when the early period of coronavirus panic stoked fears of a housing market crash.
In a release of highly classified documents from inside Australia’s central bank, economists discussed the need to treat the housing market as dysfunctional — and potentially shut down data sources letting investors know.
Lindsay David, the founder of LF Economics, said it was shocking the central bank would contemplate asking private sector data collectors to stop informing the public.
“I personally think it’s absolutely disgraceful conduct by the RBA that they have appeared to resort to giving what appears to be a manipulation of the information members of the public do and do not have access to in relation to house prices and debt.”
Stopping perceptions of a crash
In April, economist Nick Garvin wrote to colleagues warning them the bank should stop analysing the housing market as if it were operating normally, and calling for a halt — as happens to stock trading in emergencies.
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