House Price Jumps Good for the Economy According to the RBA

[Lord Shanghai]

The jawboners at the RBA are at it again. Now they are telling us that a little bit of house price inflation is good for the economy. One thing is for sure - a rate cut is headed our way.

http://www.theage.com.au/business/t...e-jumps-good-for-economy-20141118-11ow8q.html

 

[The Fence]

Yeah, and at the same time are talking about reining in exuberance in the market ???

 

[Redom]

One thing is for sure - a rate cut is headed our way.

It is - the recent price acceleration was spurred on by the RBA's monetary policy setting.

Part of the aim of cutting rates was to promote greater risk taking (healthy risktaking of course) and promote the interest sensitive sectors to invest.

Some price growth is good, not sure about a 30% rise in particular cities though.

Also not sure if this messaging necessarily points to a shift in the stance of monetary policy (currently neutral stance - i dont read the words to mean a shift to an easing bias).

Cheers,
Redom

 

[willair]

- a rate cut is headed our way.

I would not put any money on that one,some of these geniuses even when they sack all the losers still get it wrong every time..

 

[Deltaberry]

They're geniuses because they get paid a million bucks for making the wrong predictions.