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New RBA cash rate announcement for the financial year

By Rebecca Boss, Fairchild Head of Finance

The RBA makes financial headlines as it announced its initial ground breaking 2.00 percent cash rate for the start of the new financial year. This heralds an all-time low, however it is forecast that interest rates will rise again in 2016.

The announcement came after AMP Capital Chief economist, Shane Oliver, had predicted that there had not been enough cause and activity in the markets for any adjustments of the rate to be made.

This is good news for the property market, even though the RBA is likely to keep a watchful eye in the upcoming months.

Chief executive, Grant Harrod of LJ Hooker commented that the “The Reserve Bank is still weighing up the impact of this year’s two rate cuts. The Sydney and Melbourne housing markets continue to outperform, as evidenced by strong auction clearance rates. This, combined with data and the global economic environment, will guide the Reserve Bank over the remainder of the year.”

For advice on property investment , call us today on 1300 769 166, and learn more of what this means for you!

 

DISCLAIMER: This disclaimer is a requirement of the Securities Industry Legislation Act. The writer of this article is not a practicing lawyer or financier. The information, statements and opinions expressed are intended only as a guide as to some of the important considerations to be taken into account relating to property investment. I strongly suggest that you consult with licensed professionals such as accountants, Lawyers, Valuers, Development Consultants, Quantity Surveyors and others, BEFORE signing any contracts or other binding documents.