The Reserve Bank of Australia (RBA) has clearly distanced itself from the responsibility to control residential housing prices, passing it onto the government and industry regulators. In an online address, RBA governor Philip Lowe said that raising interest rates would address house price concerns at the expense of other areas of the economy. “I want to be clear that this is not on our agenda,” Lowe said. “While it is true that higher interest rates would, all else equal, see lower housing prices, they would also mean fewer jobs and lower wages growth.” “This is a poor trade-off in the current circumstances.” He said the central bank was watching the property market closely with the Council of Financial Regulators and discussing possible regulations once lending standards fall or credit growth accelerates too fast. “While monetary policy is contributing to higher housing prices at the moment, the way to address these concerns …