“The regulator’s efforts to dampen activity appear to be working, with tighter lending criteria having the desired effect.
“Though it’s worth remembering that a pronounced decline in house prices will impact consumer confidence, so the situation is delicate.
“Based on current conditions, we expect there won’t be a rise in interest rates until next year,” Ms Pilkington added.
The RBA will next meet on Tuesday, 6 March 2018.