The RBA has announced it will be keeping the cash rate on hold at 2.5 per cent, a move which has been labelled unsurprising by RP Data’s national research director Tim Lawless.
“The decision by the Reserve Bank to keep the cash rate on hold came as no surprise, with a raft of positive data flows over recent weeks,” Mr Lawless said.
“The improved housing market conditions have provided a substantial flow on effect to the housing construction sector as developer confidence improves with housing market conditions,” he added.
“We expect housing market conditions to remain buoyant while mortgage rates remain so low, however further rate cuts are looking like an outside bet at best.”
As reported in SMSF Adviser’s sister publication Smart Property Investment, a survey completed by finder.com.au showed Australia’s leading economists unanimously expected no change in the cash rate today.
Well, it’s good to know the RBA is content to see currency debauchery continue ad infinitum along with the US Federal Reserve. I wonder, pray tell, if they ever consider the stability of the currency in terms of REAL purchasing power (as opposed to ABS constructed CPI figures)as a matter of some concern. (I apologize as a former ABS and Treasury officer!)
Meanwhile, I stay indebted in order to profit from their activities while fearing the consequences of manipulated costs of capital away from any natural rate.
But, I forget, economists today do not read Bohm-Bawerk or Wicksell or Marshall.
What they do not know will harm us.