Mike Smith, chief executive of ANZ, has cautioned the RBA against any further official interest rate cuts, as the debate grows about whether Australia's record low borrowing costs will fuel a house price bubble. Mr Smith's caution comes amid fresh signs that the economy is gathering speed in a low rate environment, with business confidence soaring to the highest level in 3.5 years in the aftermath of the federal election. As house prices rise, Mr Smith says the RBA faces a 'delicate balancing act' between controlling the property market and keeping rates low to take the heat out of the Australian dollar. With house prices rising, Mr Smith said Australia's mortgage market was the envy of bankers worldwide. (VIEW LINK)
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