RBA announces rates to hold once more
2015-10-08
As predicted by the recent finder.com.au Reserve Bank Survey, which found experts were unanimous in expecting no movement to the cash rate at the October meeting, governor Glenn Stevens announced today that the rate will remain at 2.0 per cent for at least another month.
CoreLogic RP Data’s head of research Tim Lawless says: “The flat rate of growth across the Sydney housing market last month, together with a slowdown in investment related mortgage activity wasn’t enough to sway the RBA into another interest rate cut this month.
“We saw the rate of capital gain flatten out across the Sydney housing market during September, however the trend rate of growth remains very strong, with Sydney values almost 17 per cent higher over the past 12 months and 4.6 per cent higher over the September quarter.
“In contrast, Australia’s second largest housing market has gathered some momentum over the past quarter, outperforming Sydney with a 2.4 per cent rise in dwelling values last month and a 7.4 per cent shift over the quarter. Other housing market data is suggesting that conditions may be slowing,” Lawless says.
“With the Aussie dollar holding around the US71c mark, inflation remaining low and labour market conditions relatively steady, the RBA is in a good position to keep interest rates at their record lows.
“With interest rates remaining on hold, borrowers are still enjoying historically low mortgage rates, which should continue to drive demand for housing,” he adds.
Onthehouse.com.au market analyst Eliza Owen says: “Underperformance in the Australian economy has led to this decision, with further rate cuts anticipated by the end of 2016.”
Source: http://www.apimagazine.com.au/api-online/news/2015/10/rba-announces-rates-to-hold-once-more
- *E-mail：
- *Cel：
- *Password：
