AlphaWire

newswire

Falling Australian Home Prices Reinforce Case for Restrictive Policy, RBA Assistant Governor Says

2026-08-13·newswire-us-stock-015001
Falling Australian Home Prices Reinforce Case for Restrictive Policy, RBA Assistant Governor Says.

Chris Kent, an assistant governor at the Reserve Bank of Australia who oversees financial markets, said at an event that weakness in the Australian housing market could make financial conditions more restrictive than usual.

Home prices have been affected by several factors, including higher interest rates, the government’s reduction of tax breaks for investors, rising living costs and households’ already heavy debt burdens. Kent said changes to tax policy appeared to have reduced demand in the established-home market.

“All else being equal, these changes will help reduce the extent to which monetary policy needs to restrain growth in aggregate demand to bring inflation back to the central bank’s target,” he added. The Reserve Bank of Australia left interest rates unchanged at its second consecutive meeting on Tuesday.

Governor Michele Bullock took a hawkish stance, signaling that further monetary-policy tightening may still be needed.

#Stocks #Markets

Full text

Falling Australian Home Prices Reinforce Case for Restrictive Policy, RBA Assistant Governor Says

Chris Kent, an assistant governor at the Reserve Bank of Australia who oversees financial markets, said at an event that weakness in the Australian housing market could make financial conditions more restrictive than usual. Home prices have been affected by several factors, including higher interest rates, the government’s reduction of tax breaks for investors, rising living costs and households’ already heavy debt burdens. Kent said changes to tax policy appeared to have reduced demand in the established-home market. “All else being equal, these changes will help reduce the extent to which monetary policy needs to restrain growth in aggregate demand to bring inflation back to the central bank’s target,” he added. The Reserve Bank of Australia left interest rates unchanged at its second consecutive meeting on Tuesday. Governor Michele Bullock took a hawkish stance, signaling that further monetary-policy tightening may still be needed.

Chris Kent, an assistant governor at the Reserve Bank of Australia who oversees financial markets, said at an event that weakness in the Australian housing market could make financial conditions more restrictive than usual.

Home prices have been affected by several factors, including higher interest rates, the government’s reduction of tax breaks for investors, rising living costs and households’ already heavy debt burdens.

Kent said changes to tax policy appeared to have reduced demand in the established-home market.

“All else being equal, these changes will help reduce the extent to which monetary policy needs to restrain growth in aggregate demand to bring inflation back to the central bank’s target,” he added.

The Reserve Bank of Australia left interest rates unchanged at its second consecutive meeting on Tuesday. Governor Michele Bullock took a hawkish stance, signaling that further monetary-policy tightening may still be needed.

← Back to archive