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.

Rate rise imminent: AMP

By Staff Reporter
01 February 2010 | 1 minute read

The Reserve Bank is expected to raise rates for the fourth consecutive time when it meets tomorrow, amid evidence that the economic recovery is gaining momentum.

A slew of positive data over the past few weeks has all but set in stone a rate rise of 0.25 per cent.

Late last month, data from the Australian Bureau of Statistics showed the unemployment rate had dropped 0.1 per cent in December 2009 to 5.5 per cent, its lowest level since April 2009.

The positive unemployment result combined with a jump in consumer confidence has made a fourth consecutive rate rise very likely.

According to the Westpac-Melbourne Institute’s consumer sentiment index, consumer sentiment jumped 5.6 per cent in January to 120.1 and is now 33.6 per cent higher than a year ago.

AMP chief economist Shane Oliver said the Reserve Bank would not hesitate to raise the official cash rate to 4 per cent tomorrow.

“The justification will be a further improvement in the global economic outlook, a run of strong economic data in Australia for everything from employment to house prices and worse than may have been hoped for inflation figures for the December quarter,” Mr Oliver said.

Rate rise imminent: AMP
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.