The Reserve Bank of Australia has emphasised its “careful monitoring” of the Australian lending landscape by assessing the impact of APRA’s lending guidance.
In the minutes of its February 3 monetary policy meeting, released Tuesday, the Reserve Bank noted the importance of assessing the effects of the prudential regulator’s measures designed to reinforce sound residential mortgage lending practices.
This includes clarification of prudential expectations of acceptable growth in investor lending and possible steps to be considered if APRA’s expectations are not met.
“Given the large increases in housing prices in some cities and ongoing strength in lending to investors in housing assets, members also agreed that developments in the housing market would bear careful monitoring,” the RBA minutes stated.
“Activity and prices in the housing market had continued to be bolstered by the low level of lending rates and strong population growth.
“A range of indicators, including residential building approvals, suggested further growth of dwelling investment in the near term,” the minutes said.
Looking further afield, board members noted that the outlook for global economic growth was little changed.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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