In an announcement today, the Reserve Bank has decided to leave the official cash rate on hold.
Today, the board judged that it was the time to take a wait and see approach to rates, leaving the cash rate stable at 3 per cent. This will be the third consecutive month for the rates to remain on hold.
This was largely an expected result with many predicting the cash rate to remain stable. RP Data's Tim Lawless also predicted a 'wait and see' approach from the RBA, saying the property market and economy is faring well.
“The latest housing market indices from RP Data and Rismark International, which showed another rise in dwelling values across the capital cities in March, would have provided further reassurance to the Reserve Bank that the previous rate cuts are taking affect,” Mr Lawless said.
“Based on RP Data's index to the end of March, capital city dwelling values have risen by 4.7 per cent since bottoming out in May last year, with every capital city housing market recording a rise in home values.
“Rents and investor yields are also rising, as are transaction volumes. Pretty much every market indicator is pointing to a further recovery in the housing market; clearance rates are higher, homes are selling faster and vendors are discounting their prices by less.
“The broad based recovery in housing market conditions, together with the strong labour market data for February, high consumer confidence and an improving share market, are all factors that are likely to keep interest rates at their current setting.”
Governor of the Reserve Bank, Glenn Stevens, noted in the Board's statement today that "Dwelling investment is slowly increasing, with rising dwelling prices and high rental yields."