Big banks could cut mort­gage rates

Port Douglas & Mossman Gazette - - REAL ESTATE -

THE prospect of the big banks cut­ting mort­gage rates out- of- cy­cle in the coming months has been height­ened af­ter the Re­serve Bank said global fund­ing pres­sures were eas­ing, mak­ing it cheaper for banks to raise funds. The RBA yes­ter­day said there was scope to cut the of­fi­cial cash rate fur­ther if needed but is con­fi­dent the econ­omy is al­ready re­spond­ing to its re­cent cy­cle of cuts. And in a sur­prise move, RBA deputy gov­er­nor Philip Lowe said the high Aus­tralian dol­lar has also been a pos­i­tive for the whole econ­omy as it has stopped over­heat­ing and kept in­ter­est rates low.Over­all, the cen­tral bank is up­beat the Aus­tralian econ­omy is in a good spot de­spite the more cau­tious ap­proach of the house­hold sec­tor, which has also seen na­tional sav­ings lev­els jump $90 bil­lion more a year than in the mid-2000s, hurt­ing re­tail­ers. The RBA’s min­utes for the March meet­ing said the hous­ing sec­tor was pick­ing up, re­tail con­di­tions had im­proved and un­em­ploy­ment was sub­dued.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.