RBA says rates will remain low

Glenn Stevens, governor of the Reserve Bank of Australia, gave a strong indication yesterday that official interest rates are set to remain at historically low levels for long time yet.

Commenting on the apparent reluctance of Aussies to take on lots of debt, Stevens said: “All other things being equal, interest rates are likely to be lower in such a world than they were in a world in which households were extending their finances. This is a global phenomenon, but it holds in Australia too.”

“Absolute borrowing costs for most borrowers are very low despite higher spreads, because the return on one of the least risky assets – the cash rate – is the lowest for 50 years or more.”

Source: Bankheadlines.com.au