The RBA has looked past the housing downturn which has gathered some momentum over the past three months, to hold the cash rate firm at their first meeting this year.
Ever since financial deregulation in the 1980s we’ve had a finance industry scandal followed by an inquiry, a quick fix and a declaration that it shouldn’t happen again. Commissioner Hayne’s final report hasn’t gone far enough to end this cycle.
The Hayne royal commission has called for new powers for regulators to clean up the financial services sector, as the final report is handed down.
The days of niche super funds could be coming to an end, with the Productivity Commission slamming their inability to deliver low fees and better savings.
The longest period of interest rate stability on record has extended out another month, with the RBA keeping the cash rate on hold at 1.5% where it has remained since they cut the cash rate by 25 basis points in May and August of 2016.
A new Bill before Parliament could mean a radical change bankruptcy legislation, slashing the bankruptcy period from three years and one day to just a year.
Mortgage rates to investors are up as much as 50 basis points over the same time frame but the RBA has held the cash rate at 1.5% for a record 27th month.
Despite the housing downturn gathering some pace in September, we don’t expect the RBA to throw a lifeline to the housing market in the form of lower interest rates.