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.
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.”