empty
 
 

2017.02.2323:28:00UTC+00RBA head intends to retain household spending

Reserve Bank of Australia Governor Philip Lowe emphasized he wants to make sure households will not be pressured to reduce spending, flagging the threats of low interest rates as it entices them to secure so financing.

The RBA head said Friday the majority of households with borrowings seem to get by. However, he noted the current high debt level, coupled with low nominal income growth, influences them to spend, which is somehow seen in the consumption numbers.

Since he took the post in September, Lowe has managed to keep rates at a record low of 1.5%. He was worried further easing will beef up already costly house prices and encourage more perilous lending and borrowing that jeopardizes financial stability.

The central bank expects the economy to surge 3% this year, ignited by resource exports and a dwindling expansion from slumping mining investment.

Tags: Policy
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback