The RBA's Role in the Australian Housing Bubble

Chris Joy: The Reserve Bank of Australia was complicit in blowing a huge housing bubble through recklessly slashing interest rates beginning in 2012. He says the RBA repeatedly said, don't worry about these interest rate cuts, they will not ignite another big housing boom. "I actually called Christopher Kent at the RBA in 2013 after one of their rate cuts and said, listen, you now, I believe, going to precipitate a significant period of very strong double-digit house price growth," he says. In fact, Malcolm Aidey, who was head of the financial stability area of the Rba in late 2013, described my references to the risk of a bubble emerging as a quote un