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.”