Rate hold only sensible option

Rate hold only sensible option

by 0 comments

Staff Reporter

The Reserve Bank’s decision to leave the official cash rate unchanged at 4.75 per cent has been labelled as the “only sensible decision available” by the Housing Industry Association.

"There is no room for an interest rate hike which would be nothing but blight on the current Australian economic landscape," said HIA chief economist, Dr Harley Dale.

With new housing activity subdued in recent months and home buyer confidence fragile, Mr Dale believes any rate hike in the foreseeable future will place further strain on the market.

“Household confidence appears fragile, caught as it is in a pincer movement between interest rate uncertainty and post-GFC blues on the one hand and the constant dribble about a fictitious house price bubble on the other," he said.

"In this environment a rate hike would do considerably more damage than might have historically been expected, not in the least to the housing industry, and the Reserve Bank Board seem to understand that. They need to keep understanding that for the foreseeable future."

Staff Reporter

The Reserve Bank’s decision to leave the official cash rate unchanged at 4.75 per cent has been labelled as the “only sensible decision available” by the Housing Industry Association.

"There is no room for an interest rate hike which would be nothing but blight on the current Australian economic landscape," said HIA chief economist, Dr Harley Dale.

With new housing activity subdued in recent months and home buyer confidence fragile, Mr Dale believes any rate hike in the foreseeable future will place further strain on the market.

“Household confidence appears fragile, caught as it is in a pincer movement between interest rate uncertainty and post-GFC blues on the one hand and the constant dribble about a fictitious house price bubble on the other," he said.

"In this environment a rate hike would do considerably more damage than might have historically been expected, not in the least to the housing industry, and the Reserve Bank Board seem to understand that. They need to keep understanding that for the foreseeable future."

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Tim Foote on why quality over quantity is good for business

In this episode of Secrets of the Top 100 Agents, host Tim Neary talks to Belle Property’s Tim Foote, who placed number 34 in this year’...

View all podcasts

How difficult is it to maintain a good work/ life balance?

Very – if I’m having balance my competitors are working
Not – I schedule the time into my calendar in advance
A little – It’s scheduled, but something always crops up
Work/ life balance – what’s that?
Do you have an industry update?