The Reserve Bank's not forecasting a major escalation in house prices, as the economy readjusts to more normal growth

The bank's top brass have appeared before the Finance and Expenditure select committee this morning.

It cut the Official Cash Rate by half a percent yesterday, to 4.25.

Reserve Bank Chief Economist Paul Conway told MPs he expects roughly seven percent growth in that market next year.

He says the bank is not expecting a price boom - which is a good thing in terms of housing affordability -- but does see a little bit more life coming into the market.