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C&G’s Guide to the May RBA Announcement
Just 11 days from the election, the Reserve Bank of Australia has held the cash rate tightly at its all-time-low of 1.5%. In today’s blog, C&G unpack what this means for real estate, the national economy, and the future of our cash rate.
At today’s meeting, the Reserve Bank of Australia (RBA) decided to keep the official cash rate at 1.5% - despite speculation from economic analysts that there may be at least one or possibly two RBA rate cuts by the end of this year
Governor Philip Lowe announced that the cash rate would remain on hold for another month, maintaining the all-time-low rate reign since August 2016. “The Board judged that it was appropriate to hold the stance of policy unchanged at his meeting,” Lowe continued, “Given this assessment, the board will be playing close attention to developments in the labour market in the upcoming meetings.”
Seemingly, the RBA is waiting out until after the Federal Election before making any moves. Meanwhile, the housing price correction continues with all property markets showing falls during April - creating some great opportunities for investors and first home buyers.
As for homeowners, they’ll have to wait until June to find out if they’ll gain some relief from rising living costs, with the RBA given more time to assess what’s to come with future policies from incoming Labour and Coalition governments.
More locally in Bayside, Chisholm & Gamon’s expert sales team are reporting positive activity in the market. While the property market is certainly changing, quality homes are still transacting, and auction demand remains evident.
While a tougher market does complicate things for both buyers and vendors, our experienced team are on hand to ease your concerns and help you move forward with your property plans. Many of our agents have worked through market cycles before and understand the strategies that can help you achieve your goals this year.