IDEAS home Printed from https://ideas.repec.org/a/taf/chosxx/v40y2025i9p2085-2103.html
   My bibliography  Save this article

The role of housing in central banks’ monetary policy decisions in Australia and the UK

Author

Listed:
  • Mark Stephens

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.

Suggested Citation

  • Mark Stephens, 2025. "The role of housing in central banks’ monetary policy decisions in Australia and the UK," Housing Studies, Taylor & Francis Journals, vol. 40(9), pages 2085-2103, September.
    • Handle: RePEc:taf:chosxx:v:40:y:2025:i:9:p:2085-2103
    DOI: 10.1080/02673037.2024.2395361
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02673037.2024.2395361
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02673037.2024.2395361?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:chosxx:v:40:y:2025:i:9:p:2085-2103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/chos20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.