Philip Lowe says rebounding property market among reasons for shock RBA rate increase

Since April, ‘we have seen further evidence that the Australian labour market is still very tight,’ Reserve Bank of Australia governor Philip Lowe says. Photograph: Bianca de Marchi/AAP

The nascent rebound in Australian property prices was among the reasons the Reserve Bank opted to lift its main interest rate, surprising markets and most economists, the bank’s governor, Philip Lowe, has told a dinner in Perth.

The comments, coming hours after the RBA raised its cash rate 25 basis points to an 11-year high of 3.85%, expand on the short statement Lowe issued to accompany the hike.