There's good news if you still haven't bought property in Murrumbeena, as the official cash rate (OCR) is set to remain low for at least a while longer. The Reserve Bank of Australia (RBA) board met earlier this week (4 August) to determine that the economy wasn't quite ready for a rate change.
Australia has benefited from the two per cent cash rate since May, when concerns were first raised about which direction the economy was heading in. RBA governor Glenn Stevens said at the most recent meeting that while it is growing, there are still signs of weakness that need to be addressed.
At the moment, the low OCR is giving spending and lending the support it needs, so it makes sense for this to continue. Property prices are expanding in some parts of the country, suggesting that the monetary policy action is having some effect.
There's been no shortage of speculation over what the future has in store for property in Murrumbeena and the rest of the country. In recent weeks, the Real Estate Institute of Australia (REIA) forecast that it could be some time before the OCR is raised again.
"With inflation under control combined with a slowdown in housing finance, it's reasonable to expect that the RBA board will not be increasing interest rates in the medium term, providing a stable outlook for home buyers," said REIA president Neville Sanders.
The latest Consumer Price Index was below the RBA's target zone, giving further indication that interest rate stability could be on the cards over the coming months.
If you're thinking about making your first steps onto the property ladder, be sure to get in touch with the team at Ray White Carnegie. With years of experience in the local market, we'll help you find your next home.
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