Laing+Simmons general manager Leanne Pilkington has applauded the Reserve Bank’s decision to leave the official cash rate on hold yesterday.
Ms Pilkington said the constant talk of a future rate rise was “perplexing” given that another quarter of negative growth could place the country in a recession.
“The recent March quarter contraction can be dismissed as being a result of the natural disasters, but the figures are more than just a blip on the radar,” she said.
“House prices are declining in value in some markets, many home owners are finding themselves in a position of negative equity, and clearance rates are down.”
Ms Pilkington said a rate hike in July or August could damage the market and home buyer confidence further.
“The question has to be asked: why would the RBA even be entertaining the idea of interest rate rises in the current climate?
“As some analysts have pointed out, perhaps it’s time the RBA took a more transparent approach to the reasons for its decisions, particularly if the market is to be slugged with another rate rise in the coming months.”