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Reserve Bank Remains Quiet About House Prices

Australia’s economy is still in the recovering stage from the global pandemic. There are now two major factors bringing the economy to an unstuck phase.

Australia’s economy displays some signs of weak and risky progress, making it relatively difficult to get back on the track. On this, the central bank suggests some fair deals to make things better.

Further, the minutes of the Reserve Bank of Australia meeting prepared and released on Tuesday showed a robust employment growth while welcoming a massive decline in the unemployment rate as well. With this, Australia’s success rate on the health front showed required monetary support which proves to be an important factor in need of the hour.

The statement by the central bank read, “An important near-term issue was how households and businesses would adjust to the tapering of some fiscal support measures and to what extent they would use their stronger balance sheets to support spending,”

“Members agreed that, while the recovery was expected to continue, the level of output remained noticeably below its pre-pandemic trajectory.” It continued.

The Reserve Bank of Australia has discussed and revealed its action policy so far, encompassing the bond purchases, financing cost for borrowers, and supporting the supply of credits. Now the board acknowledged all the risks involved in the investors who have been searching for yields in at low-interest-rate atmosphere. It includes the inevitable risks associated with higher asset rates, especially in the housing marketplace.

On this, CoreLogic released a data report on Monday recommending the introduction of HomeBuilder to rise the demand for homes. With this, the home and real estate sales in December quarter went 100% higher than in the same quarter of 2019.

The group says that an unexpected surge in the home property prices may pivot demands again back to the units.
Further, the central bank said, “The board does not expect these conditions to be met until 2024 at the earliest,”