Brian Redican Reserve Quotations

The Reserve Bank is very firmly on hold. The housing market is treading water. Investors no longer have the opportunity to get big capital gains, so they have left the market.

The continued buoyancy of the labor market has sustained consumer confidence and limited the fallout from the softening housing market. This, in turn, ensures that the Reserve Bank has retained a tightening bias for interest rates.

GDP is looking a lot weaker than we had anticipated and that should keep the Reserve Bank on hold for a fair while.

The market has been trying to push a rate cut, but the Governor has remained steadfast, saying there is no scope for lower rates. The Reserve Bank does have a tightening bias and is concerned by wages pressure.