RBA rate change could help ease strain on commercial market
A number of industry experts are applauding the recent cut to the interest rate - the first time it ...
A number of industry experts are applauding the recent cut to the interest rate - the first time it has moved in the last year.
The Reserve Bank of Australia (RBA) decision to decrease the cash rate from 4.75 to 4.5 may have less to do with curbing inflation than it does with trying to encourage market growth - particularly in the retail sector.
Governor of the RBA Glenn Stevens indicated that this could be the case, issuing a statement that said: "Cautious behaviour by households and the high exchange rate have had a noticeable dampening effect [on the economy]."
The rate change was welcomed by key industry figures, with the chair of Real Estate Institute of Queensland Pamela Bennett saying that the shift could help to improve general public sentiment.
Bennett asserted: "Anyone working within the property industry in Queensland knew months ago that our economy was far from running away from us.
"There continues to be an over-arching mood of uncertainty amongst consumers and business owners."
Her compatriot at the Real Estate Institute of New South Wales Tim McKibbin echoed the approval of the move, saying that it could help an economy in need of stimulus.
McKibbin stated: "For those who have existing mortgages they will have more disposable income in the lead up to Christmas which would put an injection into the retail sector."