At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent. The Board found that global growth has run slightly below average this year, with reasonable prospects of a pick-up next year. Commodity prices have declined from their peaks, but generally remain at high levels by historical standards. Inflation in most countries remains well contained. Key reasons: Overall, global financial conditions remain manageable. The Australian economy has been growing a slightly below trend over the past year. The easing in monetary policy since late 2011 has supported interest-sensitive spending and asset values. A lower level of the currency than seen at present would assist in re-balancing growth in the economy. The record low cash rate has assisted in building momentum within the property industry, particularly in Sydney and Perth. Buyer competition is swelling; with auctions recording incredibly high clearance rates. Prices are firming which encourages more building. Building Approvals data shows that 13,932 approvals were recorded in July which is a steady rise from 12,518 in June. This is well up from their recent low of 10,880 in July 2012. Overall, housing approvals are sitting at around trend levels.
Posted on: Tue, 01 Oct 2013 05:31:25 +0000
Trending Topics
Recently Viewed Topics
© 2015