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RBA Governer defends low rate of 2019

22D ago 0 Replies 25 Views
Reserve Bank Governor Philip Lowe has justified rate cuts in 2019 saying households would have been hit much harder otherwise – but warned borrowing levels would be watched closely.
“We need to remember that it is possible to have too much of a good thing,” he said of the low rates situation triggering higher borrowing and property values.

“We are aware of the risk of low interest rates encouraging too much borrowing and driving excessive asset valuations. So we will continue to watch borrowing, in particular, very carefully.”
Mr Lowe said he expected households to become more comfortable now, with disposable income set to grow more strongly over the next couple of years than it has over the past couple of years.

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