RBA may wait to raise rates

Saturday 7 February 2004

The Reserve Bank of Australia (RBA) may signal that a slowing housing market and a rising currency has reduced the urgency to raise interest rates when it presents its quarterly statement on the economy on Monday.

By The Landlord

Market participants are eagerly awaiting the Statement on Monetary Policy, the first from the central bank this year, to gauge the outlook for interest rates and the economy.

The RBA raised the benchmark interest rate by a quarter of a percentage point in November, after holding it steady for 16 months and followed with another hike in December.

Economists are forecasting at least one more quarter percentage point rise in the first half of this year but the RBA stayed its hand, keeping the key rate at 5.25 per cent, when board members met this week.


Read More - Opens in a new window
Commenting is closed

Property News

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Mortgages

Mortgage rates may be at cycle low: ASB

Take note, investors: It is "quite possible" fixed rate mortgages have hit their lowest point in this cycle, according to economists at ASB.

Site by PHP Developer