1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar




Property News

Does RBA’s recent rate decision seem familiar?

August 04, 2011

You do get the feeling that nothing much has changed by reading the July Reserve Bank interest rate decision.

 

The Reserve Bank Board's July meeting left the cash rate at 4.75 per cent for the eighth straight month.


Economists are somewhat disappointed that the Reserve Bank didn't acknowledge softer economic indicators over the past month.


The world may have changed. A new era of consumer conservatism may be here to stay, causing businesses to keep prices low, thus restraining inflation. But don't expect the Reserve Bank to declare that times have changed.


The good news is that there is a nice balance of forces at work at present. Asia is strong, US is soft and Europe is mixed.


In Australia, mining and engineering are strong, consumer spending is soft and housing activity is mixed. Wage growth remains benign, reflecting mixed conditions across sectors.


What next? It is predicted that the Reserve Bank is likely to wait until August before seriously considering any change in rate settings.


Edited from Source: Craig James, Chief Economist, CommSec

Latest Articles

3 things you need to know as a property investor

Knowledge is important Entering the world of investment property is certainly exciting, but ...
read more

Why become a Rentvestor?

LJ Hooker recently surveyed rentvestors to find out why they chose the strategy as part of their ...
read more

Winter investment property checklist

If you own one rental property or many, it’s important to keep them in good condition. That ...
read more

What 'Brexit' means for the Australian property market

What is Brexit? A non-binding referendum which asked British voters the question “Should ...
read more

LJ Hooker looks outside the box as part of sales drive

LJ Hooker will look beyond its own industry as part of its national strategy to attract another 150 ...
read more

Know what home loan option is best for you

If you’ve ever looked at taking out a home loan, you’ll have noticed there are a number ...
read more