Ensure you never miss an issue of the
real estate business bulletin
RBA must keep rates on hold: Laing+Simmons

RBA must keep rates on hold: Laing+Simmons

by Reporter 0 comments

Staff Reporter

A sharper than expected shift by consumers towards saving should encourage the Reserve Bank of Australia (RBA) to maintain interest rates at current levels, a leading real estate group executive has said ahead of today’s rate decision.

“The overall sentiment has been to minimise debt and save money,” said Laing+Simmons general manager Leanne Pilkington. “The dramatic increase in the level of consumer saving has surprised many.”

She said last week’s release of the Consumer Price Index (CPI) figures, which revealed a 3.6 per cent increase in the year to June, had “little to do with a hike in consumer demand and everything to do with the ongoing impact of the natural disasters.”

“We are gradually seeing the effects of the floods and Cyclone Yasi and growing food and energy prices impact the retail marketplace. The strain on family resources and the reticence to spend is becoming very obvious in the economy.

“From a real estate industry perspective, the US debt crisis has most certainly affected the confidence of all segments of the market – owner occupiers, first home buyers and investors.

“People are naturally inclined to stay put during times of instability and this has flowed on to lesser activity in the residential property marketplace.

“Market activity has stalled in many areas around Australia as prices show an overall decline and clearance rates weaken. Because of this we would call on the RBA to keep interest rates unchanged tomorrow as any rise will obviously have a dampening effect in an already sluggish market."

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; }
RBA must keep rates on hold: Laing+Simmons
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?