(Bloomberg) -- Australia's home prices surged last month by the most in seven years, underscoring the central bank's difficulties as it seeks to nurse the overall economy back to a healthier state. The Reserve Bank kept its benchmark interest rate at a record-low 1.5 percent on Tuesday and traders don't see an increase as likely in the coming 12 months. While Governor Philip Lowe is concerned about record household debt and soaring east-coast property prices, he also faces a loose labor market, anemic wage growth and weak inflation that would normally point to policy easing.
--With assistance from Michael Heath Emily Cadman and Kimberley Painter
To contact the reporter on this story: Garfield Reynolds in Sydney at greynolds1@bloomberg.net.
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Jake Ulick
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