RBA: Risk If House Prices Rise Or Fall
The Herald Sun has a story up about the Australian central banks' concerns. In the March Financial Stability Review the Reserve Bank of Australia (RBA) sees risks if houses go up, or down!
"The bank fears the housing market might be suffering only a temporary slowdown, and could rebound, boosting the chances of a house price crash later. The RBA also said it was possible the slowdown could become so severe that households might stop spending. 'Both these risks seem to be relatively low but they cannot be ruled out,'the RBA's half-yearly statement said."
But some sanity emerged that we could use at our central bank. "The RBA also issued a warning to banks and financial institutions not to loosen their lending practices simply to preserve market share." Hear that Greenspan?