RBA announces rates to hold once more
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RBA announces rates to hold once more
Posted on Tuesday, October 06 2015 at 2:03 PM
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.
In his statement he said: “The available information suggests that moderate expansion in the
economy continues.”
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.”
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