news

RBA rate announcement

By Vivienne Kelly

The Reserve Bank of Australia has announced the outcome of its third board meeting of the year.

In line with a majority of expert predictions, the RBA has today announced that it will leave the cash rate on hold at 2.25 per cent.

The announcement will surprise few, with a finder.com.au survey of 42 economists and commentators finding that over 75 per cent of them believed rates would remain steady today.

LJ Hooker CEO, Grant Harrod, who predicted the cash rate would remain at 2.25 per cent today, said Sydney’s thriving property market would have been at the forefront of the RBA board members’ minds as they made the decision.

“Auction clearance levels in Sydney remain near record levels and more often than not reaching prices higher than market expectations,” he said.

“We are continuing to see large numbers at open inspections and agents are receiving multiple offers, so the demand is still there and fuelled by already low rates.”

Mr Harrod said he wouldn’t rule out further rate cuts, but believes the RBA has time on its side to reflect on the impact of the February rate cut.

LJ Hooker national research manager Matthew Tiller said the property market had an interesting few months ahead – speculating that winter would produce an active market, leaving the RBA further room to move if need be.

Mr Tiller said the winter market in Sydney would be particularly busy, as smart homeowners look to capitalise on the ongoing demand.

“With the east coast housing market continuing to show strength, the RBA today didn’t add any extra fuel to the fire.

“Concerns about unemployment seem to be easing and this is also good news for homebuyers and investors because it is giving them added confidence and security.”

Mr Tiller said future cuts to interest rates depend on inflation statistics and balance of trade figures, due out in coming weeks.

“We would be very surprised if they didn’t cut soon, possibly May. The market is now pricing in two further cuts to 1.75 per cent by December 2015.”

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%
RBA rate announcement
SPI logo