Door open for February interest rate cut

The release of today’s underlying inflation figure leaves the door open for the Reserve Bank of Australia (RBA) to cut interest rates in February, according to a leading economist.

JP Morgan chief economist Stephen Walters says the inflation rate or 2.4 per cent provides “accumulating evidence that domestic demand remains soggy”.

“Annual inflation tracking along the bottom half of the RBA’s two to three per cent target band provides officials with the ‘excuse’ to push the cash rate deeper into accommodative territory,” Walters says.

Matthew Gross, director of advisory firm National Property Research, isn’t convinced any further cuts will have an immediate impact on the property sector.

“I think our greater leads will come from watching what happens in retail spending,” Gross says. “I think we’ll see what happens with the new homes construction data and I think the stockmarket is a much better indicator.”

 

Read more

 

FREE Starter Pack

free-starter-pack

With everything you need to get started in property investment, development or home buying. Click here

FREE Perth Property Market Report

FREE Perth Property Market Report

With latest suburb information, growth rates and essential information for property investors and home buyers. Click here

FREE Property Briefings

FREE Property Briefings

Information sessions on the property market, latest strategies, investment and development. Cutting edge information, no sales. Click here

Subscribe

Subscribe

For the latest Hot Properties, Tips, Strategies, Property Market Info. Click here


Awards and Recognitions