Interest rates not the right ‘tool’ to address runaway house prices, Reserve Bank says – ABC News

The Reserve Bank has said property price rises can exacerbate inequality, and it is “certainly an issue” that needs to be considered at the moment.
Key points:

• The Reserve Bank says it is putting a “high priority” on full employment
• But it says monetary policy is not the right tool to address runaway house prices
• Economic activity has rebounded strongly, but wages growth remains abysmal

But monetary policy is not the appropriate tool to address the problem, because it is designed to encourage employment…

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