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Australia c.bank governor says no need to worry about house price slowdown

Published 13/06/2018, 02:30 pm
© Reuters.  Australia c.bank governor says no need to worry about house price slowdown

MELBOURNE/SYDNEY, June 13 (Reuters) - The head of Australia's central bank said on Wednesday "we shouldn't fret" the current housing market slowdown and that recent tightening in lending standards was as a long-term positive.

"We shouldn't fret just because housing prices are not rising at the rate they used to. And if they come down that's okay," Reserve Bank of Australia (RBA) Governor Philip Lowe said.

"House prices in Sydney and Melbourne are still 40 percent up from where they were in 2014. You've got to have a longer-term perspective here," he added.

"The thing that gives me some comfort is the fact that lending standards have been strengthened a lot over recent years and we've not had the (debt) problems that the U.S. has had."

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