RBA Stevens: One area of concern is investor housing finance growth

RBA Stevens:

• One area of concern is investor housing finance growth
• Open to using macroprudential tools – and that’s the kind of thing we have in mind right now
• Says sceptical about macroprudential tools as a panacea

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Finally getting some comments from RBA governor Stevens

The RBA referred to investor housing finance growth yesterday in the Financial Stability Review. Stevens referring to it again, and also acknowledging he might use macroprudential tools. Up until now the RBA has resisted the idea of using these, so I’d like to see more details on this.

If the RBA does use macroprudential tools (such as loan valuation limits, for example) it will take the some of the pressure off (if it exists) to raise rates to combat house price growth.