PHOTO: Scott Morrison on May 18. Photographer: David Gray/Bloomberg
Australia’s soggy housing market just got another shot in the arm.
The banking regulator Tuesday proposed easing lending rules that will allow home-buyers to borrow more, and central bank Governor Philip Lowe said policymakers will consider the case for cutting interest rates at its next meeting in two weeks’ time. The one-two combo could help reverse a credit crunch that has weighed on home prices.
The news is another win for the property market in recent days after Scott Morrison’s center-right government pulled off a shock election win on the weekend, killing off the opposition Labor party’s plans to wind back tax breaks for property investors. Bank shares gained for a second day on speculation the hat-trick of good news will help stem, or reverse, the slide in property prices.
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