RBA baffled by home loan growth despite rate hikes
Higher interest rates were meant to put the brakes on the housing market. The RBA is asking why the opposite happened.
Are higher interest rates actually working? The Reserve Bank has been forced to ponder that existential question after a dramatic lift in the cash rate has done little to slow house price growth or even reduce the demand for home loans.
The RBA said in its quarterly Statement of Monetary Policy that housing credit growth had picked up since mid-2023 to about the post-global financial crisis average “despite higher interest rates”.
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