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.

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

The prudential regulator has announced that it will be removing its 30 per cent speed limit on interest-only lending from 1 January 2019.  ...

A digital “neobank” is intent on challenging Australia’s “entrenched major banks” after securing a restricted banking licence from...

The corporate regulator has revealed the changes being made by lenders to reform their credit card lending practices. ...

FROM THE WEB
podcast

LATEST PODCAST: Unpacking the findings of the ACCC’s mortgage pricing report

Is enough being done to ensure responsible lending?