National House Prices Rise As The RBA Holds, But For How Long?
RBA Commentary for August 2019 The official cash rate sits at 1.00% as: · Inflation hovers around 1.6%; · The Australian dollar fell to 0.68c US; and · Unemployment sits around 5.2%. CoreLogic announced on August 1, 2019, that national housing prices across Australia had risen, albeit marginally, prompting the Reserve Bank of Australia (RBA) to leave rates on hold. Despite this move by the RBA, homeowners are welcoming the news of national home price growth as this is the first time in two years that national dwelling prices have shown positive signs. This change, however, also has many owner-occupiers and investors questioning whether or not this is an indication that the market is about to turn for the better. In light of the announcement by CoreLogic, the Reserve have left the official cash rate on hold for August. But economists are suggesting that if inflation continues to stall,and doesn’t meet RBA targets,