Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Business confidence climbs to 6 yr high

09 September 2009 Reporter

Business confidence continues to climb steadily – a further sign that agents can expect activity to improve over the spring season.

According to the National Australia Bank’s monthly business survey and economic outlook, business confidence climbed eight points to an overall reading of 18 points in August, the highest reading since October 2003.

The better than domestic outlook and improved confidence levels further erodes the case for maintaining emergency lows in interest rates.

NAB’s chief economist Alan Oster said the Reserve Bank of Australia will probably be inclined to look at the data for a month or so before beginning the process of moving settings to more normal levels.

Advertisement
Advertisement

“We see the most likely path of policy being three consecutive 25 point increases in November/December/February, taking the policy rate to 3.75 per cent by early 2010,” Mr Oster said.

“After this, the RBA board is likely to pause as they view the flow of economic data and gain confirmation that the recovery is unfolding as expected. Two further 25 point moves in August and September 2010 are then likely, taking the rate to 4¼ per cent by year-end. Over 2011, we expect further policy tightening to 5½ per cent by the end of the year.”

Business confidence climbs to 6 yr high
default
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.