W&D economic insights At the recent RBA meeting The Reserve Bank kept interest rates on hold, offering borrowers some relief as they head into the summer holidays. After a November increase to 4.35% in response to higher-than-expected quarterly inflation numbers, the RBA has opted to hold off in December due to softer monthly inflation data. Key points: The RBA has held its cash rate target steady at 4.35 per cent The RBA board does not meet again until February Economists say a higher-than-expected inflation figure between now and then could trigger another rate rise
The housing data continues to turn upwards. The volume of new loan commitments has been rising and national house price data showed a 0.7% increase month-over-month in November. All capital cities saw an increase, with Hobart the top performer, followed by Perth and Adelaide. Locally we have seen this rally too. Ballarat’s housing market has fallen since this time last year but most suburbs are starting to experience growth. Overall W&D are optimistic in the current market and see a lot of opportunities. Investors are still finding markets that are geared for strong future growth and the interest rate hikes have resulted in some attractive term investments. We have recently launched our Diamond Investment Account, allowing you to make the most of the higher interest rates. Click below for more information.
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