| By business reporter Michael Janda The Reserve Bank governor has given his strongest commitment yet to a continuation of record low rates, but also warned property investors not to get carried away with cheap loans, saying a big run up in household debt would be "asking for trouble". Glenn Stevens says the bank has shifted its rates view from one where there was scope for another rate cut, to saying that is probably not necessary at this point in time. Mr Stevens says the residential construction sector is set to pick up this year in response to record low interest rates. However, he has warned that property investor activity is already about as high as the bank is comfortable with, and reminded home buyers that prices can fall as well as rise. More » |
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