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.
Advertisement
Advertisement
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
James Mitchell
PROMOTED CONTENT
>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.”
With low interest rates and income support expected to soon disappear, the major bank has released a revised dwelling figure.
...
Join Australia's most informed brokers
Do you know which lenders are providing brokers and their customers with the best service?
Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!
