Australian Financial Review.
The official cash rate has been held at its record low of 1.5 per cent for the 28th time in a row suggesting the uncertainty in the economy continues but that a 3 per cent growth target is still achievable.
“The main domestic uncertainty continues to be the strength of household consumption in the context of weak growth in household income and falling housing prices in some cities,” the board said in its statement.
“The central scenario is still for the Australian economy to grow by around 3 per cent this year,” the board said pointing to rising business investment, higher levels …
Australian Financial Review
The Morrison government will inject $2 billion into the small business loan market in an unprecedented effort to boost lending to cash-starved firms which have complained of a worsening credit squeeze.
The creation of a taxpayer-backed securitisation fund to invest in small and medium enterprise (SME) credit will also potentially expand an asset class for institutional investors such as superannuation funds to invest in.
Treasurer Josh Frydenberg and Small Business Minister Michaelia Cash will announce the small business funding policy on Wednesday, promoting the soon-to-be-established Australian Business Securitisation Fund as a way to overcome banks typically only lending to the self-employed when …
The Reserve Bank of Australia left the official cash rate at a record-low for the 21st straight meeting on growing trade fears but expressed renewed confidence in an improvement in jobs and wages growth.
Extending the most sustained period of monetary policy stimulus in at least a quarter century, board members kept the benchmark rate at 1.5 per cent on Tuesday, despite signs of strengthening economy.
While the decision was widely anticipated, the statement largely defied predictions from some economists that there could be a further softening in the Reserve Bank’s language around the outlook for wages and inflation.
Instead, Reserve Bank governor Philip Lowe appeared to …
The Reserve Bank of Australia is at risk of being increasingly sidelined in its fight to shield debt-loaded households against rising borrowing costs as tightening money markets threaten to force the big four banks into hiking mortgage rates.
While the funding pressures have so far only forced smaller lenders – who have access to fewer pools of potential funding – to raise their home loan rates, analysts believe it is a matter of time before the majors are forced to follow suit.
In a sign of the growing pressures, key benchmark rates at which banks lend to each other have spiked sharply over recent weeks …
The Reserve Bank of Australia left official borrowing costs unchanged for an 18th straight meeting as it flagged fresh concern about rising US dollar short – term money markets that threaten to drive up interest rates.
Cementing the longest period of policy stability on record, board members meeting on Tuesday kept the overnight cash rate steady at 1.5 per cent, where it has been since August 2016.
Reiterating his view that progress in reducing unemployment and returning inflation to its 2 – 3 per cent target range will be “gradual,” Reserve Bank governor Philip Lowe blamed Donald Trump for increasing turmoil on …