RBA keeps cash rate steady
In an announcement made yesterday (June 4) by the Reserve Bank of Australia, the official cash rate ...
In an announcement made yesterday (June 4) by the Reserve Bank of Australia, the official cash rate will remain the same at 2.75 per cent.
Last month's cut from three per cent to the lower rate was welcomed across the housing industry as good news for residential property buyers, sellers and those in the building industry.
A slew of banks and lending institutions lowered their fixed and variable home loan rates after last month's announcement, offering better lending conditions for first time buyers and others looking to get in to the property market.
An initial reaction from the Housing Industry Association (HIA) shows that one property player is not happy with the decision, as HIA senior economist Shane Garrett said the RBA could have cut the rate further.
"A reduction in rates would certainly have been warranted; inflation is well within target, while economic activity is struggling in many important sectors like home building," he said.
However, he was positive about the effects that last month's decision has had.
"It is clear that the reductions so far have been helpful in nudging economic activity in the right direction."