As was widely expected, the RBA held the cash rate at the record low level of 1.50% but the Governor Phillip Lowe issued a warning to lenders to assess the loan serviceability metrics as high household indebtedness can bring the pillars of the economy down if things go wrong. Lowe also warned lenders on the interest only loans which predominantly were issued to the investors. These loans relied on continuing growth of the property market but not so much serviceability as no repayments were being made on these loans. With unemployment rising and retail spending down, the RBA would think of rate cut otherwise but will not go down that path for the fear of a further rise in the overheated property market which is now considered to be in a "bubble".
MARKET DATA
| Australia Cash rate Australia 90 day bank bill Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Dow Jones Shanghai Composite Brent Oil (USD per BBL) Gold Spot (USD per oz) Iron Ore | As at 31-Mar 1.50 1.79 2.67 2.39 0.7644 0.7161 85.67 5.2734 5869 2363 20663 3223 53.47 1249 78.92 | 24-Mar 1.50 1.80 2.75 2.41 0.7618 0.7077 84.82 5.2517 5753 2344 20596 3269 50.80 1243 88.35 | 1 year ago 2.00 2.28 2.50 1.77 0.7651 0.6726 85.87 4.9458 4999 2078 17792 3009 38.67 1219 52.75 |
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