Hi Property Lovers
I came across this article on Australian Property Investor which I'm sure most people will want!
Macquarie Bank interest rate strategist Rory Robertson says he can see "no obvious reason" for the Reserve Bank of Australia (RBA) to lift interest rates for a third straight month in December.
Robertson says the RBA doesn't really need to end the year with a cash rate of 3.75 per cent rather than 3.5 per cent.
Robertson says the RBA doesn't really need to end the year with a cash rate of 3.75 per cent rather than 3.5 per cent.
"No doubt the RBA is keen to reverse more of its dramatic move down to three per cent, but there's no great need for speed," he says.
"The RBA doesn't want to slow the economy. It doesn't want to nip the recovery in the bud. Three hikes in a row would open the door to serious criticism about being 'heavy handed' if the local recovery were to stall next year."
Robertson dismisses any argument that the RBA needs to hike in December to limit the risk of a bubble forming in house prices.
He says it's a "fairly far-fetched" fear given housing credit has been growing at one-third of its boom-time rate, noting also that local housing markets largely close down between December and February anyway, as Australians take their summer holidays.
"So I'm still guessing the RBA will choose to 'wait and see' in a fortnight."
"If Australia's economic recovery indeed remains on track over summer, policymakers can kick off next year with hikes in February and March, before tightening beyond four per cent soon after that."
This information was gathered from:
Thinking of buying or selling in Nedlands? Call me anytime.
No comments:
Post a Comment