The Reserve Bank of Australia has said property prices in the country are reasonable.
Australian property prices are not over inflated, the Reserve Bank of Australia (RBA) has said.
It played down concerns over a housing market bubble in the country, with deputy governor Ric Battellino saying values in relation to income are "reasonable", the AAP reported.
"If you look across the whole country, the ratio of house prices to income is not that different from most other countries," Mr Battellino said at a business function in Sydney.
He also said the Australian government's debt position is "very good", hinting that it is not likely to face the problems seen by many European authorities.
These issues had an effect on the RBA's decision to hold the cash rate at 4.5 per cent at the beginning of the month, Mr Battellino added.
Bank governor Glenn Stevens said interest rates to borrowers remained around the average level for the past decade and explained that the current monetary policy is "appropriate for the near term".
Posted by Steve Douglas
Australian property prices are not over inflated, the Reserve Bank of Australia (RBA) has said.
It played down concerns over a housing market bubble in the country, with deputy governor Ric Battellino saying values in relation to income are "reasonable", the AAP reported.
"If you look across the whole country, the ratio of house prices to income is not that different from most other countries," Mr Battellino said at a business function in Sydney.
He also said the Australian government's debt position is "very good", hinting that it is not likely to face the problems seen by many European authorities.
These issues had an effect on the RBA's decision to hold the cash rate at 4.5 per cent at the beginning of the month, Mr Battellino added.
Bank governor Glenn Stevens said interest rates to borrowers remained around the average level for the past decade and explained that the current monetary policy is "appropriate for the near term".
Posted by Steve Douglas
