Unchanged For Now - Maybe a Cut in May 2015?

[C-mac]

Still focusing on property specifically; if an interest rate drop does happen, the Sydney buying frenzy continues. If they manage to achieve that 70 cent USD target; AUS becomes even MORE enticing to foreign buyers = buying frenzy (at stupid prices) continues.

Not being grim but isn't this a 'damned if they do, damned if they don't scenario for the RBA in specifically property values terms?

I think the RBA should do what is right for the broader economy. Property will just have to sit and deal with it.

But then, I place blame squarely on the government for any fallout, not the RBA. Poor, lazy policy-making / policy in-action. And, I say this as a beneficiary of all the tax 'trinkets' afforded to me simply because I earn a full time salary and have some investment properties.

Anyway, rant over (don't want to sound too much like an smh article comments thread!)

 

[BayView]

Economic figures and forecasts still poor, inflation steady, r/e still on the rise, but is only one factor in the wheel..

A rate cut for May, imo.

 

[KangaBanga]

there has been a recent rebound in AUD and commodities prices though.. RBA may be tempted to hold off on another cut.

 

[Deltaberry]

A rebound in AUD is a cause for cutting...

 

[jerrybee]

When is this usually decided? First of every month right?

 

[Redom]

When is this usually decided? First of every month right?

First Tuesday of every month. So on the 5th of May, 2.30pm.

 

[wategos]

But then, I place blame squarely on the government for any fallout, not the RBA. Poor, lazy policy-making / policy in-action. And, I say this as a beneficiary of all the tax 'trinkets' afforded to me simply because I earn a full time salary and have some investment properties.

Agree, the government needs to make some serious policy changes to curtail the rampant property speculation that low interest rates have fueled, and take notice of what happened in countries like Ireland and Spain that were also not used to such low interest rates and went crazy with speculative borrowing.

 

[jerrybee]

Agree, the government needs to make some serious policy changes to curtail the rampant property speculation that low interest rates have fueled, and take notice of what happened in countries like Ireland and Spain that were also not used to such low interest rates and went crazy with speculative borrowing.

Weren't they accompanied by epic levels of oversupply? I watched a documentary on Ireland and the amount of construction was off the charts.

 

[natedog]

Rampant speculation in some real estate sub markets perhaps, but it is definitely not widespread nation as a whole price boom conditions.

The only booming capital city market is the one that had been flat for the longest period prior, some would say its just playing catch up.