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Housing Minister John Carey Urges RBA to Hold Off on Another Rate Rise
Housing Minister John Carey urges the RBA to skip another interest rate rise, blaming hikes for falling house prices.
Key points
- Economists widely expect the RBA to raise its cash rate on Tuesday, which would be the fifth increase since the last Melbourne Cup.
- House prices have fallen across Australia, including in Perth, where they have dropped $92,000 since the April peak.
- Carey said the Federal Government's negative gearing changes in this year's budget are hard to judge so far.
Why it matters. Further rate rises could push some recent buyers into negative equity and leave them unable to keep up with mortgage payments, according to fears raised in the article.
Housing Minister John Carey on Monday urged the Reserve Bank of Australia not to raise interest rates again at its meeting on Tuesday, blaming the four increases this year for falling house prices. He said successive rate rises had shaken buyers' confidence, and that in Western Australia prices had dropped $92,000 since the April market peak. Carey said he wanted price stabilisation rather than a drop, noting homes were still 90 per cent higher than a decade ago and 60 per cent up over five years.
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Housing Minister John Carey Urges RBA to Hold Off on Another Rate Rise
Housing Minister John Carey has asked the Reserve Bank of Australia to hold off on further rate rises, according to The West. He blamed the four increases this year for falling house prices. Economists widely tipped the RBA to raise the cash rate on Tuesday, which would be a fifth increase this year. Afr reported that house prices are falling at the fastest pace on record. Carey's plea places the central bank under political pressure as it weighs the housing market against inflation.