C&G's Guide to the December RBA Cash Rate Decision

Real Estate News

Interest rates are on ho-ho-hold this Christmas as the RBA announces that the national cash rate will remain at 1.5% into 2018. In today’s blog, C&G explain what this stasis means for the local real estate market and the domestic economy. 

In a move widely anticipated by economists, Governor Philip Lowe announced that the official cash rate would be kept on hold at 1.5% following the RBA board meeting this afternoon.

As per their recent announcements, the Board remains confident that keeping rates low will support the Australian economy and bring us closer to inflation targets over time. With unemployment rates declining despite low wage growth and increased investment in public infrastructure, it is expected that current economic stability will continue into the New Year.

When it comes considerations surrounding the national real estate market, high household debt outpacing income growth has resulted in APRA’s supervisory measures. Credit standards have continued to tighten, imposing a slightly tougher borrowing environment for those with a high risk profile. Once zones of some concern to the RBA, the capital cities of Sydney and Melbourne have experienced noticeable steadying of demand in recent months, easing fears of a market bubble. Rent increases have remained low in most cities, and the influx of apartments over the coming years is set to further offset demand and balance any worries of price escalation.

If you are looking to buy or sell in this final month of 2017 or into early 2018, Chisholm & Gamon are on hand to support you. With no RBA board meeting slated for January, buyers, vendors and landlords can enjoy an element of economic certainty for the time being, with little expected to change over the Christmas period.