RBA October Rate Cut to Boost Home Values Despite High Unemployment
Amid speculation that the easing of monetary policy does little to stimulate mid-term growth, the Reserve Bank of Australia (RBA), has cut the official cash rate. The reasoning directly associates with rising unemployment, US-Chinese trade tensions and a GDP growth rate that has reduced to 1.4%, it's lowest in 10-years. Sure, this all sounds formidable. But the truth of the matter is the Australian economy is fairing well despite the turbulence. According to the RBA governor Philip Lowe , the economy has reached a turning point, with interest rates expected to remain low for some time. This tactic, Philip Lowe says will allow the RBA to reach their inflation target and to decrease unemployment rates to an acceptable level. The upside is that the cost of a mortgage is continuing to fall, which makes owning a property more affordable. Home prices across Australia are also starting to rise, and this is favourable for homeowners in terms of asset growth. Based on thes