The Reserve Bank of Australia has decided not to change course on its easing of monetary policy, despite admitting that Sydney house price growth is “concerning”.

RBA governor Glenn Stevens noted in his opening statement to the House of Representatives Standing Committee on Economics last week that price rises in Sydney are “very strong, and they are pretty solid in Melbourne”, while “on the other hand they are much more mixed elsewhere.”

He continued: “Excluding Sydney, the rise for Australia as a whole over the past year was about 5%. That is a healthy pace but not alarming, and some cities have seen price falls. Developments in the Sydney market remain concerning, but in the end we did not see these trends as an overwhelming case for a further easing in monetary policy that was made on more general grounds.”