Boss of ANZ, Shayne Elliot, tells Ross Greenwood that Government action in next week’s Budget is necessary to help young people get into the housing market
Budget key to getting young people into housing market
The following is a transcript from the video:
The Reserve Bank kept interest rates on hold today, but there’s a warning for investors from the ANZ Bank boss seeking to cool speculative borrowing.
Shayne Elliott: One of the ways that we can slow, it’s very hard for us to slow, we can’t just shut the bank when we’ve when we filled up, so we use price.
Ross: The ANZ money machine keeps chugging though, the bank’s cash profit was 3.4 billion dollars in the last six months, up 23% on a flawed half last year.
Shayne Elliott: They want to be the best bank for people to want to buy an own a home or start and run a small business.
Ross: What most people will pick up is that while a bank profits are rising fast, you’ve also got a situation the Reserve Bank is keeping interest rates on hold, but the banks then are raising interest rates for some mortgage holders, especially investors. The ANZ Bank boss says that could keep happening.
Shayne Elliott: Debt can be really dangerous and people have to be cautious and conservative and it’s our role to ensure that people will borrow responsibly.
Ross: The Reserve Bank notes that house prices are rising briskly in some markets while declining in others. It says forcing banks to limit loans and raise rates will address risks caused by rising household debt. The good news it says our economy will pick up in the next three years, for homeowners the ANZ Bank boss says that’s good news.
Shayne Elliott: I think there are very strong fundamental reasons why prices are where they are, I don’t think that there’s a bubble per se and I don’t imagine there will be a significant price correction.
Ross: But he does encourage suggestions the government will announce new schemes in the budget to help first home buyers save for a deposit.
Shayne Elliott: I think the government’s taking the right approach, there is not one silver bullet to this.
Source: 9News/Ross Greenwood