RBA Governor Downplays Property Price Fall Risks

Reserve Bank governor Michele Bullock has downplayed concerns about property price falls in Australia, saying even a 20% drop wouldn't destabilize the financial system. In a press conference after the central bank's interest rate decision, Bullock emphasized that property values are not the main concern for the RBA.

She noted that banks have been conservative with loan-to-valuation ratios and housing prices have risen significantly. As evidence, Bullock pointed out that only under 1% of households are in negative equity.

Bullock's comments come at a time when Australia's property market is experiencing a slump. However, she stressed that the RBA views this as not being a massive risk to financial stability.