Powered by MOMENTUM MEDIA
subscribe to our newsletter

Rate decision 'accommodative', says RBA

The Reserve Bank has expanded on its decision to leave rates unchanged, expressing the board’s decision to implement “accommodative” monetary policy.

Advertisement
Advertisement

PROMOTED CONTENT


>In his official statement, RBA governor Glenn Stevens said low interest rates continue to “support borrowing and spending” and reflected on growth in lending to the housing market over recent months.

“Overall, the economy is likely to be operating with a degree of spare capacity for some time yet,” Mr Stevens said.

“With very slow growth in labour costs, inflation is forecast to remain consistent with the target over the next one to two years, even with a lower exchange rate. In such circumstances, monetary policy needs to be accommodative.”

The central bank is working closely with regulators to “assess and contain” risks arising from the housing market, Mr Stevens added, acknowledging that “dwelling prices continue to rise strongly in Sydney” with more varied trends in other locations.

Meanwhile, global asset manager Aberdeen’s senior investment manager David Choi said the move was unsurprising, adding there is “bias to ease further should more stimulus be needed”.

Rate decision 'accommodative', says RBA
mortgagebusiness

Latest News

Home loan commitments have soared across Australia and were above year-ago levels in all states and territories despite COVID-19, a new repo...

CBA’s investment fintech, x15ventures, has hired its first non-executive, independent chairman and a new portfolio adviser. ...

The major bank has announced that its group general manager internal audit, Shane Buggle, will take on the role of acting chief financial of...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Turnaround time blowouts

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.