APRA reaches out to major banks as housing credit picks up
The prudential regulator has asked the boards of major banks to confirm they’re maintaining a strong focus on lending ...
While there has been talk of the Reserve Bank leaving the cash rate on hold for the remainder of the year, NAB is forecasting a tightening of monetary policy come August and a second rise before Christmas.
“We have maintained our end point target cash rate at 5.25 per cent, to be reached in November 2011,” Mr Oster said.
“Any tendency for wage pressures to increase and become embedded in inflation expectations would see the RBA adopting a more aggressive monetary policy stance than we have assumed.”