RBA's Stevens: Further Cuts in Interest Rates are Unlikely


Australia's top central banker on Wednesday signalled further cuts in interest rates were unlikely as it would be "unwise" to risk further inflating already high house prices.

Reserve Bank of Australia (RBA) Governor Glenn Stevens said policy was already very accommodative and that was the right setting to support sectors outside of mining.  However, the central bank did not want to foster too much build-up of risk in the financial sector, such that people became overextended.

"It is stating the obvious that at present, while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that," Stevens told an economics event in Adelaide.  The RBA this week held interest rates at a record low of 2.5 percent, marking 12 straight policy meetings since it last cut.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD declines below 1.0700 as USD recovery continues

EUR/USD declines below 1.0700 as USD recovery continues

EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.

EUR/USD News

GBP/USD struggles to hold above 1.2500

GBP/USD struggles to hold above 1.2500

GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.

GBP/USD News

Gold slumps below $2,300 as US yields rebound

Gold slumps below $2,300 as US yields rebound

Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.

Gold News

Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now

Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now

Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.

Read more

Happy Apple day

Happy Apple day

Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple. 

Read more

Majors

Cryptocurrencies

Signatures