Home Agents & Agencies RBA Holds Interest Rates At 1.5%

RBA Holds Interest Rates At 1.5%

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Summary:

  • Interest rates “HOLD” decision, keeps rates at 1.5%
  • RBA Goveneor Phillip Lowe statement:
    • Mirrors his comments in December regarding outlook for property
    • Multi-speed property economy with hot and cold spots

The RBA board has met for the first time in 2017, and announced it’s decision to hold rates at 1.5% as widely expected.

Governor Phillip Lowe made similar statements to December’s announcement regarding the property market, saying:

“Conditions in the housing market vary considerably around the country. In some markets, conditions have strengthened further and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for a couple of decades. Borrowing for housing has picked up a little, with stronger demand by investors. With leverage increasing, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments.”

His December announcement read very similar;

“…In some markets, prices are rising briskly, while in others they are declining. Housing credit has picked up a little, although turnover of established dwellings is lower than it was a year ago.”


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