The Reserve Bank of Australia has effectively "green lit" risk-taking on property investment, and the biggest change in policy in 27 years has not only triggered a home loan war but also raised the prospect of another house price bubble.
A day after RBA governor Philip Lowe's bombshell speech, mortgage lenders were preparing for an intensification of an already "brutal" battle for market share and a resulting sharp increase in home prices.
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Matthew Cranston is the United States correspondent, based in Washington. He was previously the Economics correspondent and Property editor. Connect with Matthew on Twitter. Email Matthew at mcranston@afr.com
