Reserve Bank governor Glenn Stevens says a rate cut is not required now because the economy doesn’t need the boost. But the next rate move could be a cut, not an increase.


The RBA has lowered rates by 0.5 percentage points in 2015 and the decision by major banks to lift their mortgage rates recently had the equivalent impact of a 0.13 points increase.


The actions of those banks that have lifted mortgage rates have little effect on variable loans and none on the 15% of fixed rate loans.


Stevens said conditions outside the mining industry have been slowly improving, not deteriorating.


“So it is not as though the increases in mortgage rates are compounding the effects of a serious deterioration in economic conditions overall,” he said.