Rate Cut On Cards
Aug 20th 2005, 8:10 am
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Rate Cut On Cards
Taken from Iproperty 
whilst researching for another thread, so thought id post
Rate Cut on the Cards – RBA Boss
18th August 2005
More good news for homebuyers – there could be an interest rate cut. And this is from the man who chairs the board that determines interest rates in Australia. Reserve Bank Governor Ian Macfarlane has ruled out any move on interest rates in the near term. He told the House of Representatives Economics committee that an interest rate cut was just as likely as an increase.
Inflation was largely under control, the economy was moving along well, and the global economy was strong, Mr Macfarlane he said. Although an interest rate rise could not be ruled out, there was no more than a 50% chance, he said.
"This is a pretty comfortable position in which to be," he said. "We are not expecting to change monetary policy in the near term, and when we look further into the future we no longer see a clear probability of it moving in one direction rather than the other."
But there was a caution. Mr Macfarlane warned investors against thinking the bank would not lift rates at all. "We haven't rung that bell, we think there's a 50% chance that we might have to go up again, and a 50% chance that we might have to go down," he said.
Mr Macfarlane said the bank's quarter of a percentage point lift in rates in March did its job particularly well.
He said despite the hopes of the real estate industry, he did not think house prices would move up quickly anytime soon, "I think after the size of the boom we had, it's going to take a lot longer."
whilst researching for another thread, so thought id post Rate Cut on the Cards – RBA Boss
18th August 2005
More good news for homebuyers – there could be an interest rate cut. And this is from the man who chairs the board that determines interest rates in Australia. Reserve Bank Governor Ian Macfarlane has ruled out any move on interest rates in the near term. He told the House of Representatives Economics committee that an interest rate cut was just as likely as an increase.
Inflation was largely under control, the economy was moving along well, and the global economy was strong, Mr Macfarlane he said. Although an interest rate rise could not be ruled out, there was no more than a 50% chance, he said.
"This is a pretty comfortable position in which to be," he said. "We are not expecting to change monetary policy in the near term, and when we look further into the future we no longer see a clear probability of it moving in one direction rather than the other."
But there was a caution. Mr Macfarlane warned investors against thinking the bank would not lift rates at all. "We haven't rung that bell, we think there's a 50% chance that we might have to go up again, and a 50% chance that we might have to go down," he said.
Mr Macfarlane said the bank's quarter of a percentage point lift in rates in March did its job particularly well.
He said despite the hopes of the real estate industry, he did not think house prices would move up quickly anytime soon, "I think after the size of the boom we had, it's going to take a lot longer."
Aug 20th 2005, 10:36 am
#2
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Re: Rate Cut On Cards
I'd read that as well, although iProperty has missed out a lot of the rest of his statement re rates and property prices .. http://smh.com.au/articles/2005/08/1...353490870.html ..(may require free registration)... I think this is just another article from estate agents trying to get the market moving and prices on the up.. in reality the governor feels that if prices rise, peoples ability to spend goes down and it affects the local economy, as everyone is mortgaged to the eyeballs.
From what I have observed, the market will be 'stable' for the next few months, as it has reach the bottom of the 'low' and as most economists have suggested prices will start to pick up near the end of 2006.
......but please do your own research as I'm just a ****** eejit!!
From what I have observed, the market will be 'stable' for the next few months, as it has reach the bottom of the 'low' and as most economists have suggested prices will start to pick up near the end of 2006.
......but please do your own research as I'm just a ****** eejit!!
