Cure for housing fix ‘worse than disease’: UBS

Original article by Duncan Hughes
The Australian Financial Review – Page: 10 : 23-Aug-19

Investment bank UBS has warned that the Reserve Bank of Australia’s move towards extremely low interest rates risks reflating the residential property ‘bubble’. The ultra-low rates are also putting pressure on the dividend policies and margin levels of the nation’s large banks, while plans by the Australian Prudential Regulation Authority to reduce related-party exposure limits with regard to Tier 1 capital will put pressure on the banks’ capital.

CORPORATES
UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA RADIATION LABORATORIES, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

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