The Reserve Bank of Australia (RBA) has refused to accept there is a housing bubble in the country.
There is no housing bubble in Australia, according to one industry body.
The Reserve Bank of Australia has assured citizens that there is no need to worry despite fears emerging after the Australian Bureau of Statistics house price index increased by 20 per cent in the year to March, the Australian Associated Press reports.
Luci Ellis, head of financial stability at the RBA, said house prices have recovered since a decline in 2008 and denied that there is an
Aussie credit-fuelled "speculative boom".
She added: "It would not be desirable for the current situation to turn into one. It will therefore be important for lenders to remain prudent in their standards."
And Ms Ellis noted that house prices have been under rising pressure with a lot of people following the increased first-time buyers grant.
The organisation recently upped the national
interest rate by 0.25 per cent to 4.5 per cent at the beginning of the month, which led the National Australia Bank to raise the rate of its savings accounts by the same amount.
By Kate Guthrie
