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MNI BRIEF: More Easing Traction As Econ Opens: RBA Minutes

MNI (Sydney)
SYDNEY (MNI)

The effective transition of easier monetary policy had been "impaired" by the economic lockdowns and further easing "would gain more traction" as the economy opened up, according to the minutes from the Reserve Bank of Australia's October meeting.

The board also considered the effect of lower interest rates on wider community confidence and people reliant on interest income.

Policymakers also agreed that lower rates would help promote stability "by strengthening the economy and private sector balance sheets, thereby lowering the number of non-performing loans."This needed to be balanced against the risk of investors looking for yield, particularly the prospect of greater leverage in the housing market, the minutes showed

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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