The latest inflation figures could encourage the Reserve Bank to drop the official cash rate even further, the Real Estate Institute of Australia’s (REIA) president Peter Bushby has claimed.
“The latest figures are well within the RBA’s target zone of two to three per cent and should provide a clear message to the board to further reduce official interest rates,” Mr Bushby said.
The analytical series of trimmed mean and weighted median increased by 0.3 per cent and 0.5 per cent respectively for the March quarter 2013 – compared to increases of 0.6 per cent in the December 2012 quarter.
“The annual changes for the trimmed mean and for the weighted median were 2.3 per cent and 2.6 per cent respectively, compared to 2.3 per cent and 2.5 per cent respectively for the 12 months to December 2012,” Mr Bushby said.
The housing group increased by 1.2 per cent for the March quarter compared to 0.2 per cent in the December 2012 quarter – the annual rate of increase was 5.1 per cent.
“With inflation well under control and a subdued economy, it’s appropriate we see a further cut in interest rates when the RBA board meets in May,” he said.