It is unlikely the Reserve Bank of Australia (RBA) will carry out any interest rate cuts until the December quarter following its positive analysis, according to Westpac chief economist Bill Evans.
Mr Evans made his prediction following the RBA's release of the minutes of its recent meeting, which revealed a more optimistic attitude towards the Australian property market and economy than had been expected.
He argued that the loan is still likely to come down by 75 basis points to 2.75 per cent, but suggested that it will now take longer for the bank to make this decision.
This is because the bank is still in a "wait and see" mode, with global economic uncertainty making it difficult to come to a decision on how they should approach rate changes, concluded Mr Evans.
The Housing Industry Association recently renewed its call for further cuts following a drop in the number of new homes being built over the course of June.
Posted by Steve Douglas
