Pfft, the RBA will not hit the housing brakes this year

The AFR is today reporting that house price controls are imminent from regulators:

Apparently “pressure” is building on the RBA to slow house prices though from where that pressure is coming the article does not say (because let’s face it, there isn’t any).
RBC says the RBA is readying macroprudential tools.
These will include limits to high LVR loans and mandated percentages of low LVR loans plus hiked interest rate buffers for loan calculators.
The controls will come in Q4, 2021.

No doubt, after years of MB campaigning, the Council of Financial Regulators is now preparing a new round of macroprudential tools. But preparing tools and deploying tools are two very different things.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.