The Reserve Bank says property price rises can exacerbate inequality, and it’s “certainly an issue” that needs to be considered at the moment.
- The Reserve Bank says it is putting a “high priority” on full employment
- But it says monetary policy is not the right tool to address runaway house prices
- Economic activity has rebounded strongly, but wages growth remains abysmal
But monetary policy is not the appropriate tool to address the problem, because it is designed to encourage employment…