RBA sheds no light on macroprudential agenda

The Australian Prudential Regulation Authority's clamp on rates of growth in lending on residential investment loans attracted no commentary from the Reserve Bank in its Statement on Monetary Policy on Friday, though this measure may play a significant part in the near term.

Earlier in the week, the RBA said it was working with other regulators to assess and contain economic risks that may arise from the housing market, as it explained its decision to cut the cash rate by 25 basis points to 2.25 per cent.

Policy efforts to curtail any acceleration in these subdued rates of growth must now fall on the more vigorous APRA patrols on growth in investment lending by banks, an approach outlined in December.

Growth in credit extended to investors increased by ten per cent over the last year, the RBA observed on Friday, a level right on the APRA threshold for more intrusive scrutiny of lender practices.

Owner-occupier credit growth remained more moderate at around 5.5 per cent, the RBA said.

"An increase in housing loan approvals has been driven by investor approvals and should contribute to continued strong investor credit growth," the RBA said in Friday's Statement.