RBA intervened to avert housing slump


Damian George

New Member
this is quite a scary story

THE Reserve Bank deliberately intervened in the political debate over the property boom to stop governments releasing more land.

The bank feared the release of land would cause traffic gridlock, environmental problems and potentially a US-style housing slump, The Australian reports.

The move, detailed by a senior RBA official in documents obtained under Freedom of Information laws, is a rare example of how Australia's independent central bank is prepared to act to protect its monetary policy decisions.

The RBA last week sided with the major banks on interest rates, agreeing that their decision to go higher than the cash rate was to be expected, contrary to the claims of the Gillard Government and Opposition, who have vowed to reform the sector.

Read more: RBA intervened to avert housing slump | News.com.au