cash rate now = 4.50%

RATES UP +25BP

CASH RATE =4.50%

GLENN STEVENS: I think it would be not doing people any favours to have a prolonged period of very low rates and then hammer them unexpectedly. And of course the banks that are lending them the money should be - and I'm sure are - testing the potential borrower: can you handle some rise in interest rates?

GLENN STEVENS: I think it is a mistake to assume that a risk-less, easy, guaranteed way to prosperity is just to be leveraged up in to property. It isn't going to be that easy and I think if we think about property prices as parents - and you're a parent, as am I. I've got kids that within not too many more years are going to want somewhere of their own to live and you wonder, how is that going to be afforded?