HIA calls on banks to slash interest rates
Australia's major banks are being urged to deliver mortgage relief to homeowners, following the Reserve Bank's decision to keep the official cash rate on hold yesterday (February 5).
At its February meeting, the RBA decided to leave interest rates unchanged at three per cent, with the board saying the global economy is showing signs of stabilisation.
"Global growth is forecast to be a little below average for a time, but the downside risks appear to have abated, for the moment at least," RBA governor Glenn Stevens said in a statement.
However, one industry body believes more interest rate relief is required to reinvigorate the property sector, and is looking to the nation's banks and financial institutions to deliver it.
"Financial institutions could themselves assist domestic economic prospects by providing interest rate relief they held back from businesses and households last year," Housing Industry Association chief economist Harley Dale explained.
The expert went on to say that recent interest rate cuts have not had the same impact as in previous times, meaning more fiscal action is required.
The RBA said it would continue to assess the economic outlook and adjust the official cash rate as necessary to maintain growth and inflation over the coming months.