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The Reserve Bank of Australia recognizes that its low interest rate policies are fueling strong growth in property prices but is more concerned that tighter policies would hit employment and wage growth, according to the minutes of the October board meeting released on Tuesday.

The RBA minutes showed that housing credit could grow to an annualized 10% by early next year, creating a buildup of risks associated with high levels of household debt. The RBA sees this as an issue for prudential regulator APRA, which recently tightened lending standards.

Tighter policy settings would "create further distance from the goals of monetary policy," the minutes said.