A top executive from the Reserve Bank of Australia (RBA) noted that the central bank is satisfied with the current level of mortgage rates.
In a recently concluded securitisation conference, Guy Debelle, Assistant Governor of the RBA, who was asked about the central bank’s position on tougher competition in the mortgage market, said it depends on what “competition” meant. If the question referred to lower mortgage rates, the current level of rates “is about where we want them to be.”
“If they weren’t, we would do something about it,” he said.
Earlier this month, the RBA lowered its official cash rate by a quarter point to 4.5 percent, leading the major commercial banks to cut their mortgage rates by a similar level.
The financial markets are expecting the RBA to cut rates to 4.25 percent at its next meeting in December, although the central bank has presented no position on the likelihood of such a move.
Earlier, Debelle asserted that Australian banks may not enjoy any big cuts in funding costs from the launch of covered bonds, though they provide a means to reach safety-conscious investors abroad.
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