RBA holds rates as it waits on Christmas spending

since 2003. House values in Sydney grew 3.1 per cent in November, the biggest jump in the city since 1988."[Rate cuts have] boosted asset prices, which in time should lead to increased spending, including on residential construction," he said. "Lower mortgage rates are also boosting aggregate household disposable income, which, in time, will boost household spending."

While talking up the economy's growth prospects, Dr Lowe made clear the RBA expected to keep rates at a low level for an extended period of time. He did not rule out the RBA board considering future rate reductions. "The board agreed that due to both global and domestic factors, it was reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target," he said. "The board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time.

"National home values have recovered almost 5 per cent of the correction since the market found a floor in June, with the monthly rise in CoreLogic’s national home value index the highest result since 2003." It looks like the cash rate will be heading further south with the first 25 basis points cut possibly in February.Finance brokerage firm Finsure said the RBA was waiting to see if shoppers opened their wallets through Christmas."It looks like the cash rate will be heading further south with the first 25 basis points cut possibly in February," he said.

Forced to fix bad Coalition economy by prop up the weak Coalition economy, by hurt taking the money from pension, retirees who are not greedy, happy with a term deposit, now Scott Morrison gov. kind of steal they saves working very hard for they lives= Rich, Richest, Poor Poorest

The economy Rate cuts were for bank balance sheets, not the street economy RBA is a Bank. Name a bank that’s work for us

RBA has successfully priced first home buyers out of the market. Price inflated from low interest rates. Bank deposits (of FHBs) attracting no interest. Housing propping up a wobbly economy now.

Incompetent bunch of fools. All they have done is reinflate the housing bubble. All of this will come crashing down.....wait and see.

They're dreaming. Economy flat!

The high note of infrasound?

No central bank intervention, stock market dumps. Look how bullish that is.....

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RBA 'electrified the housing market' | Sky News AustraliaThe Australian newspaper's economics editor Adam Creighton says “the Reserve Banks seems to have electrified the housing market”.\n\nMr Creighton told Sky News all the state capitals advanced in November, and “Sydney saw a 2.6 per cent increase in one month, which is the fastest increase in more than 30 years”.\n\nThe economics editor said it is worth pointing out “the house price increases are based on very low turnover still, and turnover in the housing markets is in a 30-year low”.\n\n“While the three rate cuts don’t seem to have much effect on business investment or household consumption just yet, they certainly have had a big impact on house prices”, he said. \n\nImage: Getty
Source: SkyNewsAust - 🏆 7. / 78 Read more »

Reserve Bank stuck between a slowing economy and surging house pricesThe RBA had hopes its three rapid rate cuts might boost a cooling economy, but so far only the property market appears to have responded — again raising concerns about unsustainable household debt. 'surging house prices' Hehe good one. They’ll choose the Ponzi every time. playing with housing to control a country is bullshit scam for banking profits, then those same people expect to be bailed out, base the economy on the min wage government shouldn't be run as a business
Source: abcnews - 🏆 5. / 83 Read more »