RBA's Hunter flags deliberate cooling in housing and broader growth

Reserve Bank of Australia (RBA) Assistant Governor Hunter stated that the central bank is intentionally seeking to cool both the housing market and the broader economy, explicitly targeting below-trend growth to manage inflation. Hunter clarified that below-trend economic growth is a deliberate policy outcome rather than an unintended side effect, while emphasizing that the RBA does not anticipate a recession. Addressing transmission mechanisms, Hunter noted that the housing market remains a primary channel for monetary policy, though she downplayed the standard wealth-effect narrative by stating that house price fluctuations exert only a minor impact on consumer spending. Instead, policy transmission functions primarily through construction and real activity rather than household consumption confidence. From a market perspective, these comments reinforce a hawkish monetary policy stance. By pushing back against recession risks and affirming comfortable use of current policy settings, the commentary supports the case for further interest rate tightening, providing marginal bullish support for the Australian dollar (AUD/USD).