House price growth in Sydney and Melbourne is being driven by the “basics of supply and demand,” according to a senior Reserve Bank of Australia official.
RBA Assistant Governor (Financial System) Michele Bullock told the Melbourne Institute/The Australian Economic & Social Outlook Conference in Melbourne this afternoon “there are some fundamental issues going on that do not mean we are heading for a housing crash in these cities’’.
The senior official also said the jury is still out on what might happen in the event of a bank failure despite moves to impose higher capital levels of the big four banks and greater supervision by regulators.
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