Australia media on "the central dilemma the Reserve Bank confronts "

Reserve Bank of Australia Governor Philip Lowe gave a speech earlier today:

• RBA Lowe: Some signs debt levels are affecting household spending

Followed by Q&A:

• More from RBA's Lowe, from the Q&A following his speech

From Australia's public broadcaster, the ABC:

• Reserve Bank governor Philip Lowe has revealed the central dilemma the Reserve Bank confronts
• It would like lower interest rates to boost the economy, but it cannot cut rates because it would add further fuel to the hot Sydney and Melbourne property markets.

here's the dilemma (in Lowe's words):

• "We'd like the economy to grow a bit more quickly and we'd like the unemployment rate to come down a bit more quickly than is currently forecast.
• But if we were to try and achieve that through monetary policy it would encourage people to borrow more money and it probably would put more upward pressure on housing prices and, at the moment, I don't think either of those two things are really in the national interest."

Link to the ABC piece: Reserve Bank interest rate moves limited by high debt, rising house prices

More, this time from the Sydney Morning Herald ...

• The head of Australia's central bank said on Wednesday the risks of encouraging more borrowing by already heavily indebted households argued against seeking a faster return of inflation to its target band, another sign rate cuts were off the table.

And, the Australian Financial Review (may be gated): RBA's Philip Lowe warns of 'sobering combination' of high debt, weak wages

• Warning that many households are suffering from a "sobering combination" of high debt and slow wages growth that will drag on spending ...
• However, in answer to questions at the function, Dr Lowe signalled that the central bank doesn't see more interest rate stimulus as the most sensible answer for the economy.