RBA’s Lowe: New measures on home lending should help pull back the whole system to a more sustainable position

The Reserve Bank of Australia (RBA) governor Phillip Lowe is on the wires now, via Reuters, making a scheduled speech at the Reserve Bank Board Dinner, in Melbourne.

Key Headlines:

Financial regulators to consider further prudential measures to restrain home prices, lending if needed

Addressing supply side of housing market is a more durable way of dealing with rising prices and with debt.

Financial regulators concerned about risks to future health of Australian economy from indebtedness

Too early to assess economic damage from cyclone Debbie and NSW floods

New measures on home lending should help pull back the whole system to a more sustainable position

Wants to see an improvement in labour market to be confident overall economy is strengthening

Slows wages growth making it harder for some households to pay down debt

Possible shift to global protectionism is bad for Australia and world economy

Meanwhile, the AUD/USD pair meanders near daily troughs struck at 0.7558, extending post-RBA sell-off.