Fed:IMF urges "fine tuning" in curbing housing bubbles

AAP General News (Australia)
04-21-2010
Fed:IMF urges "fine tuning" in curbing housing bubbles

The International Monetary Fund says Australia may need to fine-tune its policies ..

to maintain a delicate balance between curbing housing bubbles and ensuring a solid economic
recovery.

In its latest Global Financial Stability Report the IMF says financial risks across
the world have eased.

The IMF now estimates bank writedowns at 2.5 trillion dollars (AU) .. that's around
half the amount it feared during the depths of the global financial crisis.

But it says booming real estate markets may pose a risk to financial stability as banks
become increasingly vulnerable to a price correction.

The Reserve Bank of Australia has raised the cash rate five times since October.

AAP RTV cb/ar/af

KEYWORD: IMF (CANBERRA)

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