MELBOURNE/SYDNEY (Reuters) – The leader of Australia’s central bank said on Wednesday”we shouldn’t fret” the current housing industry slowdown and that recent tightening in lending specifications was as a longterm good.
“We shouldn’t worry because home prices aren’t rising in the speed they used to. And should they return that is fine,” Reserve Bank of Australia (RBA) Governor Philip Lowe explained.
“home prices in Sydney and Melbourne continue to be 40 percent upward from exactly where they were at 2014. You have must have a longer-term perspective here,” he added.
“The thing which gives me some comfort could be the fact that lending standards have been fortified a lot over recent years and we haven’t had the (financial credit card debt ) problems which the U.S. has needed.”
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