Buyers can expect respite from continuously rising interest rates. After 3 months of consecutive rate rises late last year, the Reserve Bank of Australia no longer sees the need for a rate rise at each meeting. The minutes of the RBA February meeting reveal that because there had been three consecutive cash rate increases in the late part of 2009, monetary conditions were deemed to no longer be “exceptionally accommodative” although it was determined that interest rates were still “somewhat below average.” The Board did not regard that the outlook required an increase at every meeting, and the removal of government stimulus afforded the Board the flexibility to wait for more information on how the Australian economy responds to the three successive interest rate rises at the end of 2010. Future movements of interest rates are going to be dependent on key indicators the Reserve Bank monitors when contemplating interest rates: Inflation, labour markets, housing prices, retail spending, levels of consumer and business confidence and global and domestic economic conditions.
So if you have been thinking about buying, it’s a great time to get on the market. And if you are considering selling, call us today to find out what this could mean for you,
All the best,
Joshua Wygoda
Century 21 – Mosman
02 9968 1700
Source: RP Data
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