ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
Commonwealth Bank of Australia (CBA), the nation’s largest lender, has raised concerns that the current surge in home loan demand is contributing to rising property prices and creating long-term risks for the housing market. CEO Matt Comyn told lawmakers during a parliamentary committee hearing that while the bank benefits from strong housing credit growth, the pace has moved beyond what regulators may consider sustainable.
Comyn noted that housing credit growth has accelerated more quickly than the post-global financial crisis average, driven in part by increased investor activity encouraged by low interest rates. Recent data from the Australian Bureau of Statistics supports this trend, with new loan commitments for dwellings rising 6.4% in the third quarter compared to the previous quarter. Meanwhile, the Reserve Bank of Australia has highlighted that expanding investor credit is one of the major contributors to the overall rise in housing credit.
CBA itself expanded its mortgage book by 6% to A$664.7 billion ($431 billion) in the financial year ending June 30, outpacing other major lenders that reported around 5% growth for the year ending September 30. Despite benefiting from this growth, Comyn emphasized that slightly lower housing credit expansion would be better for financial stability, market accessibility, and housing affordability over the long term.
He added that credit demand may begin to cool as confidence fades around potential interest rate cuts. With inflation still running too high, CBA expects the Reserve Bank to keep the cash rate steady at 3.6% through 2026, reducing the likelihood of near-term rate relief for borrowers.
Comyn’s comments underscore the delicate balance between bank profitability, market demand, and the broader economic implications of rapid credit growth. As Australia continues to grapple with affordability challenges and strong housing demand, policymakers are increasingly focused on ensuring the market remains stable and accessible.
