Prospects for growth in the global economy have diminished despite very stimulatory monetary policy and low oil prices. Significant downside risks remain. Financial market volatility increased following the UK referendum and long-term interest rates have fallen.
The Reserve Bank has today released a consultation paper proposing changes to loan-to-value restrictions (LVRs) to further mitigate risks to financial stability arising from the current boom in house prices.
The Reserve Bank regularly reviews and refines its monetary policy decision making process to help it better handle economic uncertainty and improve the quality of policy decisions, Assistant Governor John McDermott said today.
The Reserve Bank today published a Bulletin article that explains the monetary policy decision-making process.
Growing imbalances in the housing market require policy action on a number of fronts, Reserve Bank Deputy Governor Grant Spencer said today.