Mortgage broker calls RBA cuts 'too little, too late'

Kevin Farmer

A SURPRISE dip in home loan approvals highlights how the interest rate cuts by the Reserve Bank of Australia (RBA) have proven to be too little and too late to lift the Australian home finance market, according to mortgage broker network 1300HomeLoan.

1300HomeLoan managing director John Kolenda said the ABS housing finance figures for November, 2012, fell 0.5 per cent despite market expectations of a 0.5% rise.

He said the disappointing result came after the RBA kept its cash rate on hold in November before deciding to reduce it 25 basis points to 3% in December.

"The RBA has been messing around with the cash rate for the past few years and for most of that time they have got it wrong," he said.

"I believe the official rate is still half a percentage point above what it should be.

"What was needed during 2012 was bold action by the RBA but what they delivered was too little, too late.

"It will be no surprise to see the RBA board lower rates again when they meet next month and we have some commentators predicting rates could go as low as 2% this year.

"I still think more rate cuts from the RBA will help keep the market active although there are other factors which are also influencing consumers."

Mr Kolenda said the domestic economy has been subdued by lack of confidence and cost of living considerations such as rapidly rising utilities prices, food prices and even insurance.

"Consumers have been battered with gloomy economic news for a few years and they weren't helped by the RBA raising interest rates seven times during 2009/10 after taking the cash rate down to 3% in response to the global financial crisis," he said.

"With continuing concerns over the global economy conditions, the threat of a mining slow down, retailers hurting, no property price growth and with unemployment expected to rise the outlook is poor."

Topics:  market rate cuts rba

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Colourful fundraiser a community effort

SHOWING TRUE COLOURS: Zoe Haig at the Jandowe Crazy Colour Run on Saturday.

THE Jandowae community held the Crazy Colour Run on Saturday.

Rain did not deter run-scoring feat

CRICKET: Teams went hard over the weekend.

Rain and cold weather did not hinder cricket

Senior Laura Lavelle cleans up Roma State College awards night

BIG WIN: Laura Lavelle and Tracey O'Brien.

Senior student bags an impressive six awards.

Local Partners

OUR SAY: Why musicians should be called 'tradies'

WE need to change the way we think about musicians and their role in society.

WATCH: NASA space station is live, see the view from above

In this picture taken from NASA's International Space Station from April 2015, the SpaceX Dragon is captured with the 57.7-foot-long Canadarm2 robotic arm before its installation to the Harmony module.

See the world from a new perspective as space station passes Rocky

Community garden set for Palmwoods

Kay Nixon at the Palmwoods Community Gardens will be hosting a launch day and inviting the ecommunity to come along and sign up.

Parcel of land to supply sustainable gardening for community

Barry Gibb is coming to Bluesfest 2017

FANS: Barry Gibb talks to a fan next to a cardboard cutout of his young self.

Aged 70, Gibb has re-launched his solo music career with a new album

Miley Cyrus finally confirms engagement to Liam Hemsworth

Liam Hemsworth and Miley Cyrus.

Eccentric singer confirms long-held rumour

Former Oasis frontman threw popcorn at his brother

The Gallagher brothers have famously feuded for many years.

Oasis brothers still haven't made up

OUR SAY: Why musicians should be called 'tradies'

Should bands be paid every time they play? Journalist and musician Tom Gillespie thinks so.

We need to change the way we think about musicians.

The Kardashian sex tape has gone virtual reality

Vivid make Kim Kardashian West sex tape a virtual reality experience

Mariah Carey and James Packer discussing relationship

Mariah Carey and James Packer are discussing how to work things out

January Jones: Take time away from your phone

January Jones needs time away from her phone

Want to own one of Australia's best restaurants?

TOP GONG: Mooloolaba Spice Bar has been named in TripAdvisor's Top 10 Australian restaurants for 2016.

Here's your chance to pick up one of the Coast's favourite eateries

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Ready to SELL your property?

Post Your Ad Here!