Ensure you never miss an issue of the
real estate business bulletin
RBA hints end to rate rise run

RBA hints end to rate rise run

by Reporter 0 comments

The Reserve Bank has indicated that the recent string of rate rises may be coming to an end.

Speaking at a business forum in Toowoomba last week, RBA governor Glenn Stevens said with the economy growing close to trend, and inflation close to target, interest rates are now falling back to normal levels.

“The Reserve Bank has moved early to raise the cash rate to levels that deliver interest rates for borrowers and depositors more like those that have been the average experience over the past 10 to 12 years,” Mr Stevens said.

“Those interest rates are now pretty close to that average.”

18 months ago, the RBA board moved quickly to establish an “emergency low” level of interest rates in the face of a serious threat to economic activity.

According to Mr Stevens, the central bank’s “aggressive” reduction in interest rates needed to be complemented by timely movement to raise rates back to normal levels once the emergency had passed.

Moving forward, Mr Stevens said the board’s focus will be on doing its part to achieve an average inflation target of about two to three per cent.

“Our task… is now to manage a new economic upswing. This will be just as challenging, in its own way, as managing the downturn. But it’s a challenge plenty of other countries would like to have,” he said.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
RBA hints end to rate rise run
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?