Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

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

No more rate rises: HIA

By Staff Reporter
27 January 2010 | 1 minute read

The Housing Industry Association (HIA) has warned the Reserve Bank not to raise the official cash rate when it meets next Tuesday.

According to HIA’s senior economist Ben Phillips, Australians are already struggling under high rents and property prices and higher interest rates would only serve to exacerbate the problem.

“Supply side constraints are continuing to place undue pressure on housing rents and home values, especially but not solely in Australia’s capital cities. Reducing the obstacles to boosting Australia’s housing supply is a fundamental policy challenge, and a challenge that becomes harder if interest rates are taken too high,” Mr Phillips said.

“With both the headline and the Reserve Bank measures of annualised inflation moving in the Reserve Bank’s ‘comfort zone’ of 2 to 3 per cent, bold increases in interest rates would likely prove counter-productive for the Australian economy, stifling private business investment at what is still a fragile.”

Over the December quarter, inflation recorded only a small movement upwards to be just 2.1 per cent ahead of the same period 12 months ago.

No more rate rises: HIA
default
lawyersweekly logo

Feeling burnt out? The newest event to hit the industry, REInnovate, is a must-attend for serious real estate professionals facing the pressures of a heavy workload. Get ready to walk away with the undeniable structure for success, efficiency and profitability, and get yourself back on track to focus on what’s really important for your business. Get your early bird ticket now.

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Manyana
70.61%
Tamarama
70.55%
Box Hill
64.95%
Goodwood
64.38%
Bawley Point
63.64%
Lennox Head
62.11%
Casuarina
62.08%
Queenstown
61.31%
Warana
60%
Cooroibah
59.43%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to 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.