RBA Update September 2016

By Matthew Kenworthy | Reserve Bank News

After cutting rates last month the Reserve Bank has left interest rates on hold.

What Comments Did They Make?

We’ve extracted some of the key comments relating to home loans & the housing market.

Inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.

The RBA believes the low interest rate environment is here to stay for some time. This is excellent news for current borrowers, but not great news for savers & retirees.

Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments.

Some of the segments that lenders are taking a more cautious approach to lending include:

  • Employees that are reliant on overtime and other potentially inconsistent income
  • Property Investors
  • Borrowers reliant on income from overseas
  • Non-Resident Borrowers

We’ve written about these borrowing changes previously on our blog.

Full notes from the meeting can be found at the RBA Website.

About the Author

Matthew Kenworthy is a specialist in all aspects of Residential & Commercial Finance. He can assist all borrowers from First Home Buyers to Property Investors with Large Portfolios.