The Housing Slump Is Quietly Doing the RBA's Dirty Work

The RBA's inflation fight just got a surprise free assist, and it's spelled h-o-u-s-i-n-g. Governor Michele Bullock's three rate hikes — February, March and May — were always going to cool the property market. What surprised even the bank: the May budget's negative gearing and capital gains tax changes are amplifying the slowdown, and the reverse wealth effect is now doing disinflationary work for free.