The first reason is that other measures of labor market conditions – such as the fraction of workers with part-time employment who would prefer to work full time and the number of people not actively looking for work who would like to work – indicate that more slack may remain in the labor market than the unemployment rate alone would suggest.
A preferred outcome would be a “soft landing” in the housing market, where house price growth moderates without resulting in a sharp correction. In that situation, the Reserve Bank would need to carefully weigh the efficiency benefits of removing any LVR restrictions against the risk that this might stimulate a renewed build-up of systemic risk.