Glenn Stevens, Governor of the RBA made his strongest indication the reserve bank is worried by Australia’s surging property bubble in a prerecorded interview on Channel 7’s Sunrise.
He said “I think it is a mistake to assume that a, you know, riskless, easy, guaranteed way to prosperity is just to be leveraged up into property”, taking a direct swipe at property speculators.
“We can’t assume rates will remain low”.
This comes as the Commonwealth bank forecasts that interest rates will rise at four of the remaining nine board meetings this year.
» “This is where it all happens? Now, where does everyone sit?” – Peter Martin, 29th March 2010.