Figure 4: Inflation in rents by region (annual average percent change)  Source: Department of Building and Housing  Reserve Bank policy perspective As mentioned earlier, the Reserve Bank views housing from a monetary policy perspective and from a financial stability perspective. Considering monetary policy first, the key question for us is whether the housing market buoyancy will lead to wider inflationary pressures.
An important factor in this regard is whether we begin to see a reversal of the trend increase in the household savings rate that has occurred over recent years.