Positive employment figures and the robust economy are providing the RBA assurance that the household debt that has been built in the country is not about to collapse.
The Reserve Bank is keeping close watch on the softening Melbourne and Sydney property markets and the effect it is having on household wealth.
Two central banking experts have backed calls for the Reserve Bank to begin raising its official cash rate as the national economy strengthens.
The Reserve Bank has warned house prices are at risk of falling if the banking royal commission ends up causing banks to restrict the amount of money they are willing to lend.
More hikes are expected to the US Fed’s target funds rate later this year and again in 2019 while the Australian rate stays relatively steady.
In its policy statement for March released yesterday, the RBA look set to stick with the current rate of 1.5 per cent for some time yet as it feels a little less confident about the economic outlook for the rest of the year.
The Reserve Bank has posted its final minutes for the year and they have left for the holidays on an upbeat note.
The entire year has seen the RBA interest rate unchanged at the record low of 1.5 per cent, and it’s the 16th month in a row now rates have sat there.
The Australian Prudential Regulation Authority says household debt is still too high and could be cracking down on high loan-to-income mortgages in response.
While the horses were stealing the show at Flemington yesterday for the Melbourne Cup, the Reserve Bank kept interest rates on hold at 1.5 per cent for another month.
