RBA governor 'not troubled by income to house-price ratios'

Thursday 10 March 2011

Article by Mozo

The current ratio of house prices to income for those looking to purchase a property is not an issue that needs to be addressed, the head of the Reserve Bank of Australia (RBA) has claimed.

RBA governor 'unconcerned by income to house-price ratios'

Speaking at an event in London, Glenn Stevens said the figure is not very high when compared to that seen in other nations.

He explained the broadest countrywide property prices and income figures give a ratio of about 4.5, a number that "has not moved much either way for ten years".

Despite admitting this is "higher than it used to be", other countries have greater ratios, Mr Stevens remarked.

The RBA chief also called on Australia to do a better job of managing growth than it has done in previous years, noting the country has a poor record in this area.

Last month, the bank opted to keep the country's cash rate unchanged on 4.75 per cent, with Mr Stevens saying in a statement that trade levels in Australia are at the highest level since the 1950s.

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