This afternoon, the Reserve bank cut 25 basis points from the official cash rate, the new rate is now just 4.5 per cent.
The announcement failed to shock industry experts, many economists predicted a November rate cut.
Last week’s benign inflationary growth provided the RBA with justification to cut rates.
“The rate cut should not come as a surprise from a housing market perspective, considering the soft market conditions that have been evident since June last year have created no inflationary pressures,” he said.
“In fact, capital city home values are down 3.6 per cent from their December 2010 peak and rental rates have increased by just 4.5 per cent over the 12 months to September.
“The improved debt servicing position will be a welcome improvement to anyone with a mortgage, however the primary benefit from the rate cut is likely to be seen in an improvement in consumer sentiment which should lead to an uplift in housing transaction volumes which are currently tracking about 13 per cent below the five year average nationally
Pasquale Amelang says:
24 Nov 2011
This is the fitting blog for anyone who desires to find out about this topic. You understand so much its nearly exhausting to argue with you (not that I truly would want?HaHa). You undoubtedly put a new spin on a topic thats been written about for years. Great stuff, simply great!
Damion Pagenkopf says:
28 Nov 2011
There’s noticeably a bundle to know about this. I assume you made certain nice points in options also.
null says:
03 May 2013
Hey there! I’ve been reading your web site for a long time now and finally got the courage to go ahead and give you a shout out from Kingwood Texas! Just wanted to say keep up the fantastic job!
Stop by my webpage; null