A TOP economist and the Federal Opposition have urged the Reserve Bank to cut the cash interest rate by at least 0.25 percentage points to avoid recession.
Interest rates today took another quarter of a per cent drop, stooping to their lowest levels since 1959.
The RBA has warned banks to maintain their lending standards while record-low interest rates fuel demand for new home loans.
Finance experts are saying the cheap home-loan cycle may have come to an end as fixed-term interest rates have risen for the first time in three and a half years.
The RBA governor Glenn Stevens has said he wants the sliding Australian dollar to continue to fall until it hits around the 85 US cents mark.
Home-loan borrowers have been given the heads-up not to expect any more interest rate cuts after the RBA gave the economy a quietly confident vote of approval.
After announcing no change to interest rates last week, the RBA has issued a timely warning to property buyers not to take on too much debt trying to secure a home in the low-interest environment.
The minutes of the RBA’s most recent meeting have been released, and they continue to be keen for interest rates to remain unchanged for the short to mid term.
The Reserve Bank’s monthly board meeting has ended as most predicted – with interest rates remaining unchanged.
Mortgage brokers have joined the view of economists that the RBA cash rate will remain at 2.5 per cent for the rest of the year.
