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

LJ Hooker links with Mediterranean property specialists

LJ Hooker today announced an agreement with Cyprus’ leading real estate group, Fox Smart ...
read more

LJ Hooker Shines at Industry Awards

LJ Hooker, Australia’s number one real estate network, has reaffirmed its position in the ...
read more

LJ Hooker continues growth in 2014-15

Leading real estate group LJ Hooker will continue to strengthen its network in the new financial ...
read more

Minimal spend for maximum result

Recently, a landlord added an estimated $25,000 of worth to their property by constructing a ...
read more

Best start to a year since 2009

The first three months of 2014 recorded the highest number of quarterly home sales in five ...
read more

NEW FINANCIAL YEAR BUT NO CHANGE TO RATES

The Reserve Bank of Australia’s decision to keep interest rates at historic lows today is ...
read more