Once again the Reserve Bank has made no change to interest rates this month, leaving the cash rate at the record low setting of 0.1%.
While recognising current conditions, RBA Governor Philip Lowe said that the Board considers any setback to the economic expansion to be only temporary.
“The Delta outbreak is expected to delay, but not derail, the recovery. As vaccination rates increase further and restrictions are eased, the economy should bounce back”, Lowe said.
“Housing prices are continuing to rise, although turnover in some markets has declined following the virus outbreak. Housing credit growth has picked up due to stronger demand for credit by both owner-occupiers and investors.
“Given the environment of rising housing prices and low interest rates, the Bank is monitoring trends in housing borrowing carefully and it is important that lending standards are maintained.”
Lowe concluded by reiterating that the Board has no plans to increase the cash rate until inflation is sustainably within the 2 to 3% target range, and that this condition is not likely be met before 2024.