The Real Estate Institute of Australia (REIA) has said the RBA should not move on rates after the recent release of the CPI and inflation figures.
REIA president Peter Bushby said that inflation remained in the Reserve Bank’s bandwidth and with the economy relatively subdued, it is “appropriate that the RBA board maintains interest rates at their present level”.
“Whilst in the June quarter, the Consumer Price Index (CPI) rose by 0.5 per cent and an annual inflation rate of three per cent, these figures are still within the RBA’s target zone of two-three per cent and should not put real pressure on the inflation outlook,” he added.
The housing group increased by 0.8 per cent for the June quarter, compared to 0.6 per cent in the March 2014 quarter. The annual rate of increase of 3.9 per cent is up from 3.6 per cent for the year to March.
The main increases in the June quarter CPI figures in relation to housing were in new dwelling purchases by owner occupiers, which were up 1.6 per cent, and rents which increased 0.6 per cent.
For the year to June, the largest increases were an 11.1 per cent increase in water and sewage, while rents rose annually by 2.4 per cent.