Homeowners hoping for a reprieve to rate of interest rises have been advised a pause is in sight, regardless of the Reserve Bank governor warning inflation remained too excessive.
A day after the financial institution lifted the official money fee to a 11 yr excessive of three.6 per cent, governor Philip Lowe mentioned extra fee rises may nonetheless be on the playing cards.
“Our judgement, though, remains that further tightening of monetary policy is likely to be required to bring inflation back to target within a reasonable time frame,” he mentioned.
“Inflation is still too high and while it looks to be on a declining path it is likely to remain higher than target for a few years. If we don’t get inflation down fairly soon, the end result will be even higher interest rates and more unemployment.
“With monetary policy now in restrictive territory, we are closer to the point where it will be appropriate to pause interest rate increases to allow more time to assess the state of the economy. At what point it will be appropriate to pause will be determined by the data and our assessment of the outlook.”
More to return.
Originally revealed as RBA governor Philip Lowe signifies rate of interest pause is coming
Source: www.dailytelegraph.com.au
