Aussie Housing Market Faces Further Pain as RBA Tackles Inflation

Australia's housing market is expected to continue its downward trend in the near term due to pressure from interest rates. The Reserve Bank of Australia has stated that tackling inflation is a top priority, and may need to raise interest rates further to achieve this goal.

Assistant Governor Sarah Hunter emphasized that the central bank board views elevated inflation as a major concern, and does not have 'tolerance for inflation to continue to be' above target for an extended period. This suggests that higher interest rates are likely in the future, which would further dampen housing demand.