Rate hold applauded

Rate hold applauded

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Staff Reporter

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.”

Staff Reporter

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.”

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