Australia's central bank highlighted threats in the property market and an acceleration of domestic household debt even as it lent credence to the global reflation story.

"Data continued to suggest that there had been a build-up of risks associated with the housing market," it said in minutes released on Tuesday of this month's meeting where it held interest rates at a record-low 1.5 per cent. "Growth in household debt had been faster than that in household income."

The Reserve Bank of Australia's warning comes as the economic divide in Australia sharpens with house prices more than doubling in Sydney since 2009 and Melbourne's similarly surging as investors tap cheap money. Meanwhile in the west, the heart of an unwinding mining-investment boom, property prices are falling and businesses are going bust as demand is weak.

The Australian dollar was little changed after the report, buying 77.31 US cents at 11:33 am in Sydney compared with 77.29 cents before its release.