Taking a Closer Look at the Housing Market

RBA Dashes Indebted Home Owners’ Hopes

Dwelling values are dropping in most capital cities. Sydney leads the way, with home prices now down 9.5% over the past year.

Many homeowners have been hoping the Reserve Bank of Australia (RBA) will come to their rescue by cutting interest rates below the current record low 1.5%. But they’re likely to be disappointed.

Do high income earners pay too much tax? Click here to have your say.

RBA insists on an upward trend for Aussie cash rate

As reported by RAW, Christopher Kent — RBA’s assistant governor — was questioned in Sydney at a Bloomberg event regarding the likelihood of a further interest rate cut next year. His response was not the one we were hoping for:

We have said that it’s likely the next move is up, it doesn’t mean if it’s needed the next move might not be down.

But that’s not in our forecasts, which are for a gradual fall in unemployment and a gradual rise in inflation. And that’s why the next move will likely be up.

Of course, recent soft economic data for our country points towards a cut being in our favour. But the RBA are constantly reiterating their belief that further cuts will do nothing but fuel an Aussie debt binge in our housing market.

They continue to do this, even with our country on a brink of another property market collapse.

An optimistic forecast from RBA leaves us guessing

Kent claimed that our recent market move is ‘modest’ in the grand scheme of things, alluding to a cut being a kind of overreaction to a single quarter of data.

But that’s like telling someone to refrain from taking antibiotics until the infection spreads to the other leg.

Kent also noted that the forecast for unemployment and inflation still looked positive. Though he did admit that progress towards meeting the bank’s targets would be gradual.

That’s just a nicer way to say…inefficient.

As to the housing market specifically, Kent claimed the risks lie in banks tightening credit because of the negativity surround the Banking Royal Commission.

Way to flick the blame onto someone else.

PS: The global elites could be waging a stealth war on cash even as you read this. This free report reveals more. And three actions you can take today to help safeguard your financial privacy.

The Australian Tribune Editorial

The Australian Tribune Editorial

The Australian Tribune is an unorthodox news service. Your Australian Tribune editorial team deliver the unfiltered stories that could impact your daily life — political and economic stories you’re unlikely to get anywhere else. And we’re not afraid to step on some toes to do it. We are honest, conservative and never dull. We are an independent service, meaning we don’t answer to shareholders or outside advertisers. This helps avoid conflicts of interest that inhibit mainstream sources, which keeps our voice independent. The Australian Tribune is owned and operated by Port Phillip Publishing.
The Australian Tribune Editorial

Latest posts by The Australian Tribune Editorial (see all)

Comments: 0

Your email address will not be published. Required fields are marked with *