SYDNEY (Reuters) -Australian home prices jumped by the most in more than two years in October as rate cuts and government policies fuelled buyer demand, data from Cotality showed on Monday, while rents also increased.

That added to signs financial conditions might not be as tight as thought as the Reserve Bank of Australia worries about a resurgence in inflation that has crushed market bets of more policy easing this year.

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($1 = 1.5389 Australian dollars)

(Reporting by Stella Qiu; Editing by Jamie Freed)

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