November RBA Rates Announcement – Unchanged at 1.5 per centNovember 2 2016
The Reserve Bank of Australia has held interest rates at the low 1.5 per cent for another month.
The statement released by RBA Governor Phillip Lowe on Melbourne Cup day, was no surprise to most economists who had expected the existing rate to hold.
“In Australia, the economy is growing at a moderate rate. The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports,” Dr Lowe said in the statement.
“In the housing market, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments. Turnover in the housing market and growth in lending for housing have slowed over the past year. The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades.”