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4 good reasons to keep rates low

Livewire Exclusive

Livewire Markets

4 good reasons to keep rates low. The RBA is likely to keep interest rates at 2.5%, probably out to the September quarter 2015. While housing has picked up, economic growth overall remains sub-par, unemployment is still drifting up, inflation remains benign and the $A is still too high. All good reasons to keep rates low. Is the RBA too focused on investor activity in the housing market? No - The RBA is right to be trying to prevent the housing market from overheating. The surge in investor housing loans is a sign that this has become a risk. So best to try and slow before it gets out of hand and do it in a way that doesn't damage the broader economy.

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