Yes, the heat is coming off the housing market. But it wasn’t just on fire last year - it was burning uncontrolled

The Reserve Bank looks more likely to ease off its run of interest rate rises – although it does need to keep an eye on what the US Federal Reserve is doing. Photograph: Christopher Hopkins/The Guardian

The first Tuesday of the month is a big event in finance and economics and this week was no different with the Reserve Bank lifting the cash rate by another 25 basis points to 2.6%, the highest it has been since July 2013. And yet while it set off another round of Australia’s favourite game of “What does this mean for housing prices?” the decision does suggest that the RBA is being rather mindful of slamming on the economic brakes too hard.

Before we get to house prices (don’t worry, we’ll get there) let’s have a look at what the RBA is saying about wages and what that might mean for interest rates.