Powered by MOMENTUM MEDIA
subscribe to our newsletter
Credit growth ‘moderate’, says Stevens

Credit growth ‘moderate’, says Stevens

Reserve Bank of Australia governor Glenn Stevens has played down concerns regarding housing finance growth as the central bank announced the cash rate will remain steady for another month.

In a statement announcing the outcome of the RBA board meeting yesterday, Mr Stevens said credit is seeing moderate growth overall.

“Growth in lending to investors in housing assets is stronger than to owner-occupiers, though neither appears to be picking up further at present,” he said.

Advertisement
Advertisement

However, Mr Stevens noted that business lending has been strengthening.

While he acknowledged that dwelling prices continue to rise strongly in Sydney, the RBA governor said price trends have been more varied in a number of other cities.

Despite the falling dollar, a lower exchange rate is likely to be needed to achieve balanced growth in the economy, Mr Stevens said.

“At today's meeting the Board judged that it was appropriate to hold interest rates steady for the time being,” he said.

“Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target.”

 

Credit growth ‘moderate’, says Stevens
mortgagebusiness

 

Latest News

ASIC is determined to flex its muscles, with a bill designed to enhance its enforcement powers one step closer to law.  ...

Treasurer Josh Frydenberg has told the banks and regulators that they will face an inquiry down the track to ensure they have lifted their g...

A CEO has welcomed the introduction of legislation that would “remove a handbrake” that has held back customer-owned banks from competin...

FROM THE WEB

POST RC PANEL DISCUSSION ADDED

podcast

LATEST PODCAST: The aftermath of the final royal commission report

Is enough being done to ensure responsible lending?