Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

RBA fuels rate rise speculation

Staff Reporter 3 minute read

The Reserve Bank of Australia governor Glenn Stevens has increased speculation that rates may be raised sooner rather than later.

Speaking at a Senate Inquiry yesterday, Mr Stevens cautioned that keeping rates too low for too long could produce a housing bubble.

Mr Stevens said he endorsed the government’s fiscal stimulus but warned that they must stick to the strategy of winding back the spending.

“I haven’t really had a serious problem with what’s occurred on the fiscal front thus far,” he said.

Advertisement
Advertisement

“It’s important these measures should be wound back over time, but they’re on track to do so.

“The more important issue will be for the joint support being given by both fiscal and monetary policy to be withdrawn in a timely fashion as the recovery proceeds – not too soon because we don’t want to abort the recover, but not too late as we don’t want to overheat it.”

According to the Australian Financial Review, money markets raised the chances of a rate rise at the 6 October board meeting to 23 per cent, up from 15 per cent.

RBA fuels rate rise speculation
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
handshake news Ex-broker head to lead MyState banking

A former broker head has returned to MyState Bank to tackle turna...

BBS 2021 ta SA/NT’s top brokers crowned

The leading brokers in South Australia and the Northern Territory...

Paul Kearney ta AFCA recruits from ME Bank

The complaints authority has named a new executive general manage...