(19 March 2010 – Australia) The Reserve Bank of Australia’s assistant governor Guy Debelle said, in Melbourne yesterday, that interest rates look likely to rise ‘a bit further’.Mr Debelle also noted that rising levels of household debt was resulting in changes to monetary policy having a much larger impact than normal.
The RBA raised rates 25 basis points, to four percent, earlier this month, after leaving monetary policy unchanged in February; saying the official rate rise was aimed at keeping the economy from excessive growth that might spark higher inflation.
Mr Debelle also said that the market for the securitisation of debt appeared to be recovering based on the number of securitisations carried out this year.
Lending from non-bank lenders was on the rise and this was because their source of funding was now close to being competitive with that of the larger banks, Mr Debelle added.