Australian property policy seen as model to follow

The way the Reserve Bank of Australia dealt with the country's housing market has been held up as a model for others to follow.

By talking down the market while refusing to trim interest rates during a world economic slowdown in 2002, the central bank avoided a boom and bust situation, experts told Reuters.

Economist at Macquarie Brian Redican said: "Other countries are looking at the Australian example as a very positive one and there are some lessons to be learnt from that episode."

The news agency stated that the European Central Bank is among those coming round to the view that asset bubbles should be targeted.

Australia's policy may encourage those looking to buy Australian property there that the country offers a more stable market.

Earlier this week the Australian Bureau of Statistics Housing Finance Data revealed that there was a 1.1 per cent increase in the level of demand for housing finance in the country in June.

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