The Reserve Bank of Australia (RBA) has said it would continue to “carefully” monitor trends in housing borrowing after announcing it will hold the cash rate at the current record low 0.1 percent. Following the bank’s monthly meeting, RBA Governor Philip Lowe noted Australia’s economic recovery was much stronger than initially expected. However, despite the housing market experiencing the fastest price growth in 32 years, Lowe reiterated that the bank would not raise interest rates until sustainable inflation reached 2 to 3 percent. “Housing markets have strengthened further, with prices rising in most markets,” Lowe said. “Housing credit growth to owner-occupiers has picked up, with strong demand from first-home buyers.” “Given the environment of rising housing prices and low interest rates, the Bank will be monitoring trends in housing borrowing carefully, and it is important that lending standards are maintained.” Commonwealth Bank’s Head of Australian Economics Gareth Aird told The …