Filtering by Tag: Reserve Bank of Australia
So, interest rates remain on hold by the RBA at 1.50%. With an inquiry into the financial sector, it would be a very brave bank that raised interest rates at the moment. What we are now seeing is APRA growing some teeth that is supporting the muscle it used to slow investment lending and a recognition that some practices were perhaps a little too easy for some borrowers to access loans.
Read the Full ArticleThis was a link provided to us today by Goran Padezanin which highlights a recent speech given by the RBA Deputy Governor. It is not difficult to see this being a problem for some property owners that continue to leverage any equity that became available to them. Given many markets in Australia are softening in terms of volumes and prices in particular sectors, going to a principle and interest repayment structure could be problematic .
Read the Full ArticleAgain, the Reserve Bank has decided to leave the cash rate unchanged at 1.5% and again we will see the banks act on their own. Part of the reason for such a benign interest rate environment (at least for the RBA) was the recent CPI data which came in at just 0.5% or 2.1% for the year. This is only just within the RBA's desired band of 2.0%-3.0%.
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