 The role of housing in central banks’ monetary policy decisions in Australia and the UKMark Stephens Housing Studies, 2025, vol. 40, issue 9, 2085-2103 Abstract: This article provides direct evidence of the role of housing in central banks’ monetary policy decisions through the examination of the minutes of the Reserve Bank of Australia Board (RBA) and the UK’s Monetary Policy Committee (MPC). It focuses on three periods when economic shocks necessitated monetary policy activism: the Global Financial Crisis, the Covid-19 pandemic and the subsequent inflationary resurgence. It enhances understanding of the monetary transmission mechanism by identifying the role of lender behaviour which contributed to the adoption of Quantitative Easing by the MPC; and of the ‘leaning against the wind’ debate by revealing the RBA’s view on rising house prices as a bulwark against mortgage default and financial instability. However, it also reveals these central banks’ underdeveloped understanding of the role of rental housing, and challenges the fragmentation of fiscal and monetary policy between elected governments and independent central banks. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:chosxx:v:40:y:2025:i:9:p:2085-2103 Ordering information: This journal article can be ordered from DOI: 10.1080/02673037.2024.2395361 Access Statistics for this article Housing Studies is currently edited by Chris Leishman, Moira Munro, Ray Forrest, Alex Schwartz, Hal Pawson and John Flint More articles in Housing Studies from Taylor & Francis Journals |
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