Sydney may be in a housing boom, but the Reserve Bank of Australia still is considering further rate cuts
It seems that the Reserve Bank is having further thoughts of cutting interest rates, following board members decision to still keep the option on the table on the 5th May. Readers will remember the last cash rate cuts being implemented in February and then this May by two percent.
Minutes from this month’s meeting reveals that the RBA is unclear about whether more cuts should be implemented this month, May, or they should wait for June. The RBA highlighted 3 particular factors that have contributed to this possible imminent decision:
- A slacking Australian economy, with factors such as unemployment and growth slower than originally anticipated.
- China’s growth rates have fallen due to their distressed property market, therefore leaving China less inclined to have a greater demand for Australian products.
- Measured resurgences from Australian non-mining business investment.
While inflation is forecast to be lower, meaning that the RBA have the room to decide when further cuts will be, there is the notion that the housing market could be disturbed, a good thing for property investors.
What will the RBA decide? It is only a matter of time before we know, but in the mean time Contact us today on 1300 878 898, to learn more of what this means for you.