Will the RBA target house prices? Sure it will. To push them higher. There is literally zero prospect of it doing anything else at this stage. And a negative probability of the Morrison Government following recent moves by New Zealand’s Ardern Government to force responsibility for house prices onto the RBNZ. The AFR is asking the question will the RBA follow?
The Reserve Bank of Australia will closely watch a move by its cross-Tasman counterpart to explicitly consider house prices in setting New Zealand’s interest rates.
Cheap money around the world is pumping up asset prices, including property in Auckland and, to a lesser extent, places such as Sydney and in regional Australia.
