australia keeps rates on hold warns on housing
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Australia keeps rates on hold, warns on housing

Arab Today, arab today

Arab Today, arab today Australia keeps rates on hold, warns on housing

Australia's central bank holds interest rates at a record low amid fears a rise could
Sydney - AFP

Australia's central bank held interest rates at a record low 1.50 percent for a seventh straight meeting Tuesday as it juggles a booming property market with mixed economic data.
The Reserve Bank of Australia slashed rates 300 basis points between November 2011 and August last year to support non-resources industries as the economy transitions out of a mining investment boom. It has remained on hold since then.
In a statement, Reserve Bank governor Philip Lowe said the board "judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time".
Economists expect a better reading on the bank's intentions moving forward once it considers first quarter inflation data due later this month, potentially making the board's May meeting more interesting.
Inflation remains below the Reserve Bank's 2-3 percent target band, while the jobless rate has edged up to 5.9 percent since the bank last met.
At the same times wages growth remains weak, eroding consumers' purchasing power. Data this week showed continued softness in retail sales.
The central bank is juggling all this alongside surging property prices, particularly in Sydney and Melbourne, amid fears the market is entering bubble territory.
This is widely seen as why it has held off on further rate cuts owing to worries it would stoke more debt-funded speculation and push the cost of housing even higher.
Lowe noted that "growth in household borrowing, largely to purchase housing, continues to outpace growth in household income".
"Lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions," he added.
"A reduced reliance on interest-only housing loans in the Australian market would also be a positive development."
The decision to stay on hold was widely expected by economists, and the Australian dollar was largely unchanged at 75.93 US cents after the statement.
Lowe noted the economy was "continuing its transition following the end of the mining investment boom".
"Recent data are consistent with ongoing moderate growth," he said.

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

australia keeps rates on hold warns on housing australia keeps rates on hold warns on housing

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

australia keeps rates on hold warns on housing australia keeps rates on hold warns on housing

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates

GMT 04:29 2018 Wednesday ,19 September

North and South Korea: Kim and Moon hail new future

GMT 14:18 2013 Monday ,19 August

Newlywed Lebanese couple pose at car bomb site

GMT 11:11 2011 Friday ,12 August

Palestinian university ranks seventh in Arab world

GMT 15:16 2015 Wednesday ,26 August

UAE ambassador attends charity ceremony in Qalubiya

GMT 16:59 2016 Tuesday ,26 July

Hedge funds in new cycle of oil short-selling
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday