The Reserve Bank of Australia’s nod to rising leverage and a pick-up in home loans suggests an easing is unlikely any time soon -- given the governor has financial stability hard-wired into his DNA.
Philip Lowe and his board left interest rates unchanged at 1.5 percent Tuesday, as expected, and reaffirmed growth would accelerate to about 3 percent over the next couple of years despite a contraction in the third quarter. Lowe also noted the global reflation story and stronger growth in developed countries, spurring commodity prices in a windfall for Australia.
