PHOTO: The Government hopes the average householder will splash more cash — but that’s not proving true. Picture: Supplied Source: istock
One of Australia’s top economic figures has made stark comments about property prices. But it’s the last-minute change to his speech should ring alarm bells.
“We can be confident that lower interest rates will push up asset prices, and I think that later on we will have problems because of that,” said RBA governor Philip Lowe this week.
It was a small, but signficant last-minute change to his speech.
This stark warning of problems “later on” is a far cry from the confidence the RBA has exuded more recently.
“Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy,” Dr Lowe said in July when the RBA cut Australia’s official interest rate to a record low of 1 per cent.
READ MORE VIA NEWS.COM.AU