RBA 'predicts period of households borrowing less'
The Reserve Bank of Australia has predicted there will be a period of households borrowing less money, which will result in a subdued growth in credit.
Reserve Bank of Australia Deputy Governor Ric Battellino gave a prepared speech at the Annual Stockbrokers Conference in Sydney, where he said that it is likely credit growth will remain in single digits for the foreseeable future.
He noted that this will be well below the levels that were encountered during the financial crisis, with many now reluctant to get back into the same levels of borrowing again.
"The most likely scenario is that household borrowing will continue to grow at a relatively subdued rate for some time yet. From the Reserve Bank's perspective, this would be a welcome development," Mr Battellino said.
The financial expert also recently predicted there would be a rise in local interest rates soon as a result of the rise in the global economy.