RBA Governor: Global outlook better, supply side of housing needs to be addressed - ANZ

Analysts at ANZ note that the Governor of the RBA spoke at a Board dinner last night and discussed two issues: the global economy and housing.

Key Quotes

“On the first his view is best summed up by the comment that “encouragingly, over recent months forecasts for global growth have been revised up, not down as has been the case fort the past four years.” On the second, the key concern has been “that the longer the recent trends continued, the greater the risk to the future health of the Australian economy.” While he supports the recent measures taken by APRA Governor Lowe goes on to say that we need to be “realistic about these and other prudential measures can achieve. As I said before, the underlying driver is the balance between supply and demand.” And on this, while “the availability of credit is undoubtedly a factor…but it is not the root cause.” As such, “we need to address the supply side if we are to avoid ever-rising housing costs.”