Chris Caton: why a stay on interest rates adds up

Pendal Group

Pendal Group

The RBA has been a reluctant cutter for some time, with the view a record-low cash rate should suffice. But, of course, borrowers don’t borrow at the cash rate. Recent moves by the major 4 banks could mean that the “retail rate” is now higher than the RBA would like, in which case the probability of a rate cut increases. On the other hand, the RBA may be quite happy to have some of the (localised) heat taken out of the property market. While it is true that auction clearance rates have fallen, they remain above the level usually associated with significant price weakness (that said, feel sorry for the denizens of Perth, where house prices are down by more than 6% from early in the year). Note falling growth in investor credit is not an indicator of a slowing market. It is no coincidence that the growth of credit to owner-occupiers has accelerated in the past two months, to the highest rates since early 2010. How are these two related? Find out from BTFG's Chief Economist here (VIEW LINK)


At Pendal Group, our vision is to combine the benefits of our strong institutional foundation and performance-focused culture with a multi-boutique specialist investment approach. We believe this approach firmly positions Pendal to achieve...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.