The Interest Rate Dilemma

The Reserve Bank has left the official cash rate on hold at its fifth meeting of the year, marking a record 22 months without a change.

RBA Governor Philip Lowe said housing credit growth had slowed over the past year, especially to investors.

“APRA’s supervisory measures and tighter credit standards have been helpful in containing the build-up of risk in household balance sheets, although the level of household debt remains high,”.

“While there may be some further tightening of lending standards, the average mortgage interest rate on outstanding loans is continuing to decline.”

Will the Banks be able to manage margins or increase mortgage interest rates to offset rising international borrowing costs?

Seek professional advice today regarding your existing or proposed lending requirements.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

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