Ensure you never miss an issue of the
real estate business bulletin
Rate hike off the cards for now

Rate hike off the cards for now

by Reporter 0 comments

Minutes released by the Reserve Bank from its monetary policy meeting earlier this month reveal that the central bank may have relaxed its penchant for rising interest rates – for the time being.

According to the minutes, the central bank maintains its view that the economy will grow somewhat above trend over the next few years however economic indicators over the past month had not placed any urgency on the need to move on monetary policy yet.

The board also noted the ‘dual’ forces at work within the economy.

“While there had been additional evidence of the coming strong pick-up in investment in the resources sector, activity remained quite subdued in some other important parts of the economy, partly reflecting the board’s earlier actions as well as the appreciation of the exchange rate,” the minutes read.

The board acknowledged that credit growth remained moderate while international activity was posing downside risks to the economy, particularly sovereign debt problems in Europe.

“Members judged that it would be prudent to leave the stance of policy unchanged, pending further data on international developments and on the strength of domestic demand and inflationary pressures,” the minutes concluded.

The Reserve Bank kept the official cash rate on hold at 4.75 per cent for the seventh consecutive month when it met on June 7.

Indications of a pause will be met with relief from Australian investors and home buyers who have been hit rising living costs from all angles.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Rate hike off the cards for now
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?