RBA holds interest rate at 1.5%

Reserve Bank of Australia is expected to stand pat on its 1.5 percent cash rate in the meeting later in the day, according to a Reuters poll.

Boosting transport links and infrastructure would help in addressing some of the supply concerns, he added. At the same time, though, slow growth in wages is making it harder for some households to pay down their debt.

"We continue to see rates on hold at 1.5% for an extended period, with concerns around persistently low inflation offset by the strength in the housing market".

Lowe noted the economy was "continuing its transition following the end of the mining investment boom".

Ms Auld said it seemed like the central bank's assertion that the economy would achieve three per cent growth over the next two years was no longer the key message.

Excessive house price inflation has been an ongoing issue in Australia.

CoreLogic head of research Tim Lawless said the combination of higher mortgage rates, as well as firmer policy settings from APRA around investment lending and more scrutiny from ASIC on lending behaviour are likely to "take some heat out" of investment demand.

Golden: De Blasio's Rikers closure plan could handcuff city
Plans for Rikers Island were revealed Sunday after Mayor Bill de Blasio vowed to close the jail facility Friday . Jonathan Lippman, former chief judge of the New York State Court of Appeals, studying the jail complex.

"The current annual GDP growth in Australia of 2.4 per cent remains tepid, reflected in continuing low wage growth as well as business investment", he said.

Dr Lowe blamed the rise of these loans (which he described as "unusual by worldwide standards") in part on the "taxation arrangements that apply to investment in residential property" - a veiled reference to negative gearing and the capital gains tax discount.

"Too many loans are still made where the borrower has the skinniest of income buffers after interest payments", Reserve Bank of Australia Governor Philip Lowe said in a speech on Tuesday.

The Australian Prudential Regulation Authority said last week that interest-only loans should account for no more than 30 percent of new loans. A reduced reliance on interest-only housing loans in the Australian market would also be a positive development.

"With the cash rate likely to remain on hold, at least for the remainder of the year, it's looking increasingly like other factors will be necessary to undertake the heavy lifting required to bring about a housing market slowdown. In fact, we still believe it may prompt it to cut interest rates to 1.0 percent later this year". With global interest rates so low, many investors have found it attractive to borrow money to invest in appreciating residential property.

The RBA will probably need a few months to gauge whether these new measures will work to cool the housing market.

"It would consider further measures if needed", he warned.

Recommended News

  • Goldberg gives unscripted goodbye to WWE Universe after RAW

    Goldberg gives unscripted goodbye to WWE Universe after RAW

    If the past few months are anything to go by, this has the potential to be the shortest title match in Wrestlemania history. Well, WWE has just shown fans that they're not budging on their stance - Reigns will remain the top star in the company.
    49ers Announce Offseason Program Schedule

    49ers Announce Offseason Program Schedule

    National Football League teams follow a strict set of collectively bargained restrictions during offseason workouts. Voluntary offseason workout programs are meant to provide training, teaching and physical conditioning for players.
    PlayStation 4-Exclusive Spider-Man Game To Release in 2017

    PlayStation 4-Exclusive Spider-Man Game To Release in 2017

    It looks like Marvel's doing everything that it can to make sure that Spider-Man: Homecoming stays true to its Comicbook roots. During the video he said: "there's even more on the horizon for 2017 like Spider-Man coming to PlayStation 4 and Marvel Vs.
  • Iceland to make equal pay the law for men and women

    It is held in April to symbolize how far into the year women must work to earn what men earned in the previous year. It's a fight continuing more than a half century after President Kennedy signed the Equal Pay Act in 1963.

    Tornado kills 2 in Louisiana as state put on 'high alert'

    A family in Alabama is now doing their best to clear their home before more rain comes after a tree fell on top of it. Above: A trailer home where two people were killed after a possible tornado, is damaged in Breaux Bridge, St.
    Smoke billows across Dubai as high-rise catches fire

    Smoke billows across Dubai as high-rise catches fire

    The site is near to the 63-story The Address Downtown Dubai tower that was heavily damaged in a fire on New Year's Eve on 2015. Dramatic skyscraper blazes are a growing problem in Dubai and other rapidly developing parts of the United Arab Emirates.
  • Jordan Spieth ready to bury Masters meltdown

    Jordan Spieth ready to bury Masters meltdown

    Jon Rahm has gone from rising star to bonafide star real quick, and he's been outside the Top 10 just once since late January . Tough for the patrons, especially those here for the first time to The Masters, but it did not seem to bother the players.
    Babies cry most in UK, Canada, Italy & Netherlands

    Babies cry most in UK, Canada, Italy & Netherlands

    Researchers found that on average, babies cried for around two hours per day in the first two weeks after birth. Wolke said that time can increase to around two hours fifteen minutes per day at six weeks .
    Kim Kardashian denies claims she was attacked while leaving LA restaurant

    Kim Kardashian denies claims she was attacked while leaving LA restaurant

    Kim Kardashian is doing just fine after reports surfaced the E! reality star was physically attacked while in Los Angeles . Kim apparently learned of the rumor, which claimed she had been attacked outside the Beverly Hills restaurant Mr.
  • Syrian field hospital hit after chemical attack

    Syrian field hospital hit after chemical attack

    The attack would not be the first time regime forces have been accused of using chemical attacks against their own people. There was no comment from the government in Damascus or any worldwide agency in the immediate aftermath of the attack.
    Chicago police arrest 14-year-old in rape on Facebook Live

    Chicago police arrest 14-year-old in rape on Facebook Live

    The girl's mother was shown the screenshots and was able to identify her daughter, the Tribune reported. The Post typically does not name victims of sexual assault.
    South Jersey Police Target Distracted Drivers

    South Jersey Police Target Distracted Drivers

    Parents, Distracted Driving Awareness Month seems like a great time to have a chat with your teens about safe driving. Accident reports in the state of MI now tracks whether drivers were distracted when they had their accidents.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.