Interest Rates Remain On Hold (1)
The Reserve Bank of Australia has kept the status quo at its last board meeting of 2017, with interest rates remaining on hold at 1.50 per cent.
REINSW President Leanne Pilkington said it is unlikely that we will see interest rate movement from the RBA in 2018.
“The OECD has recently signalled that the winds of change in the Australian economy may be preparing to blow, and that a rate rise may come sooner than previously thought. Even so, this would be 12 months away,” Ms Pilkington said.
“With the heat gone from the housing market, and with wages, unemployment and inflation steady, there’s little impetus for the RBA to tinker with interest rates in the near term.”
Ms Pilkington said property prices are likely to remain stable due to robust demand, though the number of foreign buyers may ease.
“The supply cycle in many markets has peaked, so we see 2018 as a steady year categorised by absorption, with those projects that are underway and recently completed best positioned to absorb prevailing domestic demand,” she said.