Housing investor loans growth eases slightly
|21/09/2019||Posted by admin under 南京夜网||
The central bank is almost certain to cut the cash rate another 25 basis points, to 2 per cent, either next week or in May in a further attempt to stimulate non-mining investment.The pace of lending to property investors eased slightly in February, giving the Reserve Bank of Australia more scope to cut interest rates without adding fuel to overheated housing markets in Sydney and Melbourne.
The RBA said on Tuesday the value of credit to buy-to-let and buy-to-sell investors expanded by 0.7 per cent month-on-month in February, compared with either 0.8 or 0.9 per cent for the 10 previous months.
For the 12 months to the end of February, however, accumulated growth was 10.1 per cent, unchanged from January and compared with 10 per cent at the end of last year.
Total mortgage lending in February expanded 0.5 per cent, compared with 0.6 per cent in the six preceding months.
However, for the 12 months to end-February, growth was 7.2 per cent, against 7.1 per cent at the end of both January and last December.
Total credit growth for the month came in at 0.5 per cent, in line with market expectations. Year-on-year expansion was 6.2 per cent, slightly below expectations but above the revised 6.1 per cent seen at the end of January.
The central bank is almost certain to cut the cash rate another 25 basis points, to 2 per cent, either next week or in May in a further attempt to stimulate non-mining investment.
The RBA eased monetary policy for the first time in 18 months in February, and indicated further cuts would be necessary to help the flagging economy rebalance away from resource infrastructure investment.
Bets are also rising that a third cut for the year may also be warranted, as the sharp drop in commodity prices undermines residual investment plans in the sector and hits Australia’s fiscal accounts.
Sluggish business investment and consumer spending is also holding back growth, and could help push the unemployment rate towards 7 per cent.
According to Tuesday’s aggregate credit data, the value of personal loans shrunk 0.3 per cent in February, while business lending growth also slowed, from 0.8 per in January cent to 0.6 per cent.
The Australia dollar was largely unchanged around US76.60¢ after the data’s release.
This story Administrator ready to work first appeared on Nanjing Night Net.