in three years The Bank of Australia’s analysis shows that if the 0.1% interest rate is maintained for a long time, Australian house prices may rise by 30% within 3 years. If the interest rate is a temporary interest rate, the expected housing price increase is 10%. Although the Reserve Bank of Australia is worried that too low borrowing rates will lead to asset bubbles, the bank believes that the current credit standards are prudent and feasible. The RBA also believes that the biggest risk to the Australian economy is high unemployment, and low interest rates can increase Australian household assets and reduce the risk of high unemployment. Bank of Australia Governor Philip Lowe believes that the 0.1% interest rate will not be raised for at least 3 years, and believes that credit growth and first home ownership are in good condition, which is conducive to the recovery of the Australian economy.
https://www.afr.com/policy/economy/low-rates-inflate-asset-prices-rba-20210117-p56upq