The Reserve Bank of Australia has warned banks and households to remain prudent with their lending and borrowing practices amid record low rates. With house prices rising at their quickest pace in three years, the central bank today gave another signal it was closely watching how the property market reacted to record low interest rates, cautioning home-buyers not to expect a repeat of the bumper house price growth of the 1990s and early 2000s. ‘‘An increase in housing market activity more generally is not surprising given reductions in interest rates. However, it is important that those purchasing property maintain realistic expectations of future dwelling price growth,’’ the bank said in its half-yearly Financial Stability Review. theage.au/business/the-economy/rba-warns-banks-households-to-be-careful-20130925-2uddv.html#ixzz2fsDwbk7Q theage.au/business/the-economy/rba-warns-banks-households-to-be-careful-20130925-2uddv.html#ixzz2fsDaSKsB
Posted on: Wed, 25 Sep 2013 04:00:17 +0000
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