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ISCOVER
Staff Reporter
Loan Market Group has told the Reserve Bank to stay on the interest rate sideline for several more months or risk damaging consumer confidence.
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Loan Market chief operating officer Dean Rushton said it was no surprise to see the RBA leave the cash rate at 4.75 per cent as it reviews the economic impact of the floods across eastern Australia.
“It is understandable that the RBA has resisted increasing rates this month with the nation trying to recover from natural disasters in Queensland and Victoria,” he said.
“The RBA could do a lot to restore consumer confidence by remaining on the sidelines, at least for the first half of this year.
While there will be inflationary pressures as a result of the flood rebuild, Mr Rushton said consumers are wary and weary at the moment and the last thing most home owners need is an interest rate rise.
“Mortgage holders, particularly those also having to contend with repairing flood affected homes, just want to have an extended period of stability.”
