Guy Debelle, an assistant governor with the Reserve Bank of Australia has warned that it was extremely likely that interest rates would rise further, but said that central bank was acutely aware that higher levels of household debt, means that tightening monetary policy had a far greater impact than it did in the past.
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Australia’s superannuation industry, estimated to manage $1.2 trillion in assets, will eventually have to assume a leadership position as the country’s largest institutional investor as it increases in size by more than four fold over the next two decades.
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The Australian central bank, the Reserve Bank of Australia (RBA) says that bad debt charges faced by Australia’s major lenders appear to have peaked, and in doing so will help them maintain their position amongst the most profitable banks in the world.
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The Federal Treasury believes that the financial services industry in Australia remains highly competitive, despite the capturing of a large proportion of market share by major lenders in the aftermath of the financial crisis.
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The Reserve Bank of Australia says that Australia’s major lenders are using higher funding costs as an excuse to profit at the expense of mortgage borrowers and businesses.
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Australians spent nearly 22 per cent less on charge and credit cards during the month of January compared with the previous month according to new data from the Reserve Bank of Australia.
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New data analysing the movement in credit card interest rates over the last two years shows that Australian bank’s have been the main beneficiaries of interest rate cuts, having kept 85 per cent of the savings resulting from the central bank easing interest rates.
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Australians feeling increasingly secure in their jobs due to the rapid decline in unemployment rate over the last few months has helped them deal with the pain of tighter interest rates.
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Despite the recovery in car sales, Australian car loan demand has declined to below levels seen a year ago, and the up-tick in sales is painting a false picture of recovery.
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Australian credit card holders face the spectre of higher monthly payments as major lenders increase their interest rates in response to the central bank tightening official cash rates.
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