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Guy Debelle, the central bank's deputy governor, acknowledged record-low interest rates were bad for the young trying to buy their first home but argued failing to tackle unemployment would have worse social consequences.
'It is important to remember that while housing prices may not rise as fast without the monetary stimulus, unemployment would definitely be materially higher without the monetary stimulus,' he said on Thursday night.
'Unemployment clearly has large and persistent distributional consequences.'
The RBA on Friday updated its economic forecasts to have unemployment falling to 4.75 per cent by June 2022 and to 4.5 per cent by December 2022, a level last touched in November 2008.