The Reserve Bank of Australia decided that the cash rate will remain on hold at 2.50 per cent for October. The Australian dollar has continued to strengthen over recent weeks contrary to the Banks preferred position on the local currency. Retail sales remain flat and although house building has improved over recent months overall levels remain relatively modest given current historically low interest rate settings. Despite a weakening economy, housing markets continue to strengthen with buyer activity intensifying over the month particularly in Sydney and Melbourne. According to RP Data national research director Tim Lawless the interest rate setting is currently providing an appropriate level of stimulus. "Not only are home values up by 8.7 per cent since the recovery trend kicked off in June last year, there has also been a sharp improvement in the level of credit demand for new housing."
Posted on: Tue, 01 Oct 2013 07:19:15 +0000
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