Stevens is stuck between a frenzy and a hard place

A jump in inner Sydney's apartment market points to a broader dilemma the Reserve Bank faces: hold or lift rates and cause a spike in the dollar, or lower them and trigger a housing bubble.

One of the key bellwethers of the Australian dwelling  market, inner Sydney apartments, has turned dramatically. This big change has implications for Australian interest rates.

Suddenly, local buyers who have been dormant in the market are now clambering to buy because they think there is a profit to be made.

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