The RBA shouldn't ignore the housing market's headwinds

The Reserve Bank's reluctance to tackle the risks posed by the housing sector clashes with its mandate to promote financial stability, especially given the implications of a bust for banks and credit markets.

Increasingly lost among the monthly debate on interest rates is the Reserve Bank of Australia’s other mandate: to promote financial stability. Given the number of headwinds facing the Australian housing market, financial stability deserves even more attention than that allocated to monthly cash rate movements.

Last night in a speech at the University of Adelaide, the RBA’s head of financial stability Luci Ellis walked us through a range of issues related to financial stability since the onset of the global financial crisis.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles