Bank juggles dilemma of housing and inflation

  • What is the lesser of two evils – the housing bubble or low inflation?

It’s a tough choice, particularly when you consider the limited ability of monetary policy to definitively solve either problem.

But that is the central dilemma facing the Reserve Bank this week as it juggles mounting pressure to deal with these conflicting economic forces.



Traders are evenly split on whether Reserve Bank governor Graeme Wheeler will deliver another interest rate cut this week. Photo / Mark Mitchell

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