RBA to take comfort from Housing Finance data drop - TDS

Research Team at TDS, suggests that there is no monetary policy implication from today’s Housing Finance data from Australia that showed the number of Home Loans rose 1.7%/m in April, below the 2.5% forecasts by the market and well below the near 3% predicted by the ABA Bankers survey.

Key Quotes

“The value of owner-occupier loans was virtually unchanged, but value of lending to investors dropped a large 5%/m and the prior month was revised down too. The RBA will take comfort from this drop, taking a chance in yesterday’s statement to issue a veiled warning to investors against chasing the run up in property prices.”