The Reserve Bank will keep official interest rates unchanged until next year, and then only increase borrowing costs slowly, because record mortgage debt has created a “housing powder keg,” Deloitte Access Economics says. In a report that also says slowing in the housing market could drag on growth, the consultancy highlights how sensitive many households are to interest rate changes, which will limit sharp increases in the cash rate, now at 1.5 per cent. To read the entire article by Clancy Yeates in The Age Business, please click here.
Tags: interest rates