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 appoints award winning BDM

Australia’s number one real estate network, LJ Hooker has announced the appointment of a ...
read more

Record low rates to fire-up pre-spring market

The Reserve Bank’s decision to cut the cash rate to a new record low, combined with capital ...
read more

Capital gains slow but market still grows

So how is the market travelling? According to LJ Hooker’s recently released Open Market ...
read more

So who is the modern-day RentvestorTM

Since the Rentvestor™ trend emerged in 2013, LJ Hooker has been keenly tracking the evolution ...
read more

LJ Hooker is the digital leader

At LJ Hooker, we’re very proud to announce that we’re the industry’s digital ...
read more

Light the way

The Block judge Darren Palmer gives his tips for lights in renovations. Use natural light to your ...
read more