This week was cash rate decision week and, after a month of intense speculation, the Reserve Bank of Australia made their decision.
The official cash rate was left at a record low of 2.25 per cent for a second consecutive month, as most experts had predicted.
However, we might not be sitting at 2.25 per cent for long with many experts in belief that we will be seeing a rates cut by next month.
As reported in Real Estate Business Online, Macquarie Group senior economist James McIntyre said there was a good chance the cut would happen as early as May if the Australian dollar pushes beyond US$0.78.
It is also reported that Sydney’s hot market will not hold back the RBA from cutting the cash rate.
AMP Capital chief economist Shane Oliver believes, “While the strong Sydney property market is a concern, it is clearly now very isolated and not indicative of the rest of Australia.”
“As such it should not hold the RBA back, but rather should be dealt with via other means (ie APRA).
Peter Clements, Licensee / Auctioneer / Director
0415 920 920, firstname.lastname@example.org