RBA in talks with APRA on lending practices

FXStreet (Bali) - RBA’s Edey (Assistant Governor, Financial System) and Luci Ellis (Head of Financial Stability) are speaking before the Senate Economics References Committee on Affordable Housing, noting that the RBA is currently on ongoing talks with APRA on sound lending practices.

Main headlines hitting the wires

APRA has noted a trend to riskier lending practices

House prices have risen significantly faster than income

Repayment burdens not particularly high

Hard to be specific on possible tools

Caps on loan-to-value ratios are unlikely

Macroprudential tools need to be carefully targeted

Measures aimed particularly at investor finance, but not necessarily limited to that

Supply factor critically important for housing market

House prices have risen significantly faster than incomes

Monitoring what other countries are doing

Worried about how house price downside would look

Don’t want to kill the investor market

Any measures need to be proportionate, targeted