The RBA had hopes its three rapid rate cuts might boost a cooling economy, but so far only the property market appears to have responded — again raising concerns about unsustainable household debt.
CoreLogic's December survey found prices nationally have risenwhile the more expensive and indebted markets of Sydney and Melbourne have jumped by more than 6 per cent.
"There's a real possibility here that the prices in Sydney and Melbourne are going to continue to fire up right throughout 2020 before we see any action from [prudential regulator] APRA." "Every new house that comes onto the market, I feel a need to immediately go see, because they're going really quickly and there's not much new stock coming on," she said.
The fear of further inflating house prices and debt was one of the key reasons behind interest rates being kept on hold for almost three years, despite below average economic growth and inflation remaining well below the RBA's target band during that period.
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