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.