By
Australian home loan approvals fell a seasonally adjusted 0.5% in November from October, according to newly released ABS figures, and one industry figure has placed the blame squarely on the RBA.
1300HomeLoan managing director John Kolenda has accused the RBA of failing to move quickly enough on rates. Kolenda said the shock fall in home loans after most economists predicted a 0.5% rise is due to the Reserve Bank's reticence in moving aggressively on rates.
"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. I believe the official rate is still half a percentage point above what it should be," Kolenda said.
In spite of the RBA's loosening cycle since November 2011, Kolenda said the Bank had still failed to jumpstart the housing market.
"What was needed during 2012 was bold action by the RBA but what they delivered was too little, too late," he said.
Kolenda claimed it would be "no surprise" to see the Reserve cut rates again when it meets in February, and said some economists predicted the official cash rate could fall as low as 2%.
"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," he said.
