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Guest Carol from Vista Financial

RBA cash rate decision 4 September 2018

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Guest Carol from Vista Financial

No change again, rate remains on hold:

"Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Housing credit growth has declined to an annual rate of 5½ per cent. This is largely due to reduced demand by investors as the dynamics of the housing market have changed. Lending standards are also tighter than they were a few years ago, partly reflecting APRA's earlier supervisory measures to help contain the build-up of risk in household balance sheets. There is competition for borrowers of high credit quality." 

- Statement by Philip Lowe, Governor: Monetary Policy Decision, 4th September 2018

But as we can see from this past week, this is only one factor used by lenders in determining whether or not to move on rates. Is it to cover cost of wholesale funding or to recoup upcoming fees for civil penalties? Watch this space.

Full release by RBA available here.

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