Interest rate hold may signal property comeback
While homeowners may be disappointed by the Reserve Bank's decision to leave interest rates on hold, one economist believes this is the start of an 'up-swing' in the residential property market.
The RBA kept the official cash rate on hold at three per cent for the third consecutive month at yesterday's (April 2) meeting - a move that HSBC chief economist Paul Bloxham said signals the end of the rate-cutting cycle.
He told The Australian: "Tactically, it pays the RBA to appear as though it's likely to cut, particularly given their concerns about the continued high Australian dollar, but a 'dovish bias' does not mean they will necessarily follow through," he said.
AMP Capital chief economist Shane Oliver weighed in on the discussion, saying that it appeared the RBA is in a "wait and see mode" on interest rates, with there being no sign it will deliver a rate cut next month.
"To get further easing, the signs of improvement that we're currently seeing would have to peter out or there'd have to be some sort of global shock and they certainly don't seem in any rush to move," Mr Oliver told News Limited.