RBA bemoans cautious homeowners
The Reserve Bank’s efforts to boost the economy through interest rate cuts is being undermined by “cautious homeowners afraid to reduce their monthly repayments”.
- Lower interest rates are also aimed at reducing the cost of borrowing for the business sector
- The RBA is depending on rate cuts flowing through businesses and households into the broader economy
- But households have a “reduced appetite for debt” and are more likely to leave their repayments unchanged, even in the face of lower interest rates