Top 5: Finance & property quotes week commencing October 20

By the resi financial blog team, 27 October 2014

Top 5: Finance & property quotes week commencing October 20

Investment is a rife topic this week, with comments coming from all quarters. General industry sentiment seems to be that governmental policy is needed to direct and grow, rather than curtail, current levels of investment.

#1. Deputy Governor of the Reserve Bank (RBA) of Australia Philip Lowe addressing an investors conference on October 21:

"This rise in the prices of existing assets is understandable. Indeed, it is one of the channels through which stimulatory monetary policy works. Low interest rates make it less attractive to hold savings in bank deposits and more attractive to hold other existing assets – and prices respond. The higher asset prices should then both encourage, and make it easier for, firms to increase their investment spending – that is, to use their savings to finance the creation of new assets."

#2. Chairman of the Australian Prudential Regulation Authority, Wayne Byres in his appearance before Senate Standing Committee on Economics on October 22:

"That is not to say that we would never use [macroprudential] tools... but they are unlikely to be the first ones we reach for."

#3. In an October 22 statement Real Estate Institute of New South Wales President, Malcolm Gunning, reproached the RBA Governor for his change in stance on property investment in so short a period of time, saying that the RBA should not be telling people how to invest, or making threatening noises with regards interest rates.

"Six months ago, Mr Stevens was encouraging investment in real estate. Now that the public is buying properties with confidence the RBA has changed its mind and is being critical, giving warnings about investing in an over inflated market."

#4. On October 20 Glenn Byres, the Director of the NSW Division of the Property Council of Australia commented on the state's robust recovery, and the economic environment going forward:

"The real challenge is sustaining the current momentum – and the robust pipeline of current and next-generation infrastructure projects will fuel more investment."

#5. Oliver Harvey, a senior executive leader of the Australian Securities and Investments Commission spoke at a closed markets conference on October 23. Mr Harvey commented on the effects of new trading tools that do not follow normal algorithms, but rather use principles similar to social networking sites.

"If used more widely by public markets, it may raise fairness concerns if some types of investors or market users are favoured over, or exclude, others in so-called liquidity clubs," said Mr Harvey, according to a October 24 article by Business Insider Australia.

Categories: Business Owners, Financial Services