RBA leave rates on Hold

 In News and Events

“For those employed in the struggling residential construction industry, today’s decision represents a missed opportunity.” said HIA Senior Economist, Shane Garrett

 “The tool of interest rate intervention is blunter now than it has been in previous downturns,” explained Shane Garrett. “Even the RBA’s own figures show that the Banks have withheld 0.4 per cent of the 1.75 per cent in RBA rate cuts since 2011. RBA research also shows that a large chunk of households are using mortgage rate cuts to pay down existing debt rather than adding to spending in the economy.”

These two factors underline the urgency for a further move on rates, while there is nothing stopping Australia’s banks from passing on further interest rate relief themselves,” concluded HIA Senior Economist Shane Garrett.

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