22 April 2010
The Reserve Bank has confirmed that interest increases were partly in response to the recent strong residential property price growth, linked to constraints in the supply of housing.
The minutes of this month’s Reserve Bank board meeting, released this week, confirmed that one reason for the recent interest increases was that “the supply of new housing was not expanding sufficiently, partly because of the land usage policies of local and state governments and also because of the tightness of finance for developers”.
The minutes are available here.
