The days of the housing boom are unlikely to return, a major bank boss has claimed.
News Ltd has reported that Westpac chief executive Gail Kelly told an economic forum in Brisbane that compound growth in house prices would not return. Kelly said consumers were now deleveraging, and would shun high levels of debt. Kelly told the forum that the current environment represented a return to "old-fashioned banking".
Kelly's comments echoed those of RBA governor Glenn Stevens. News Ltd has reported that Stevens told business leaders consumers were "grumpy" because of the dramatic structural change taking place in the economy following the housing boom.