Global Power | Local Knowledge | Uniquely Personal
All Articles News FAQs Videos
中文

RBA 'may not cut rates'

The Reserve Bank of Australia may not cut rates as quickly as predicted, an analyst has claimed.

Predictions that the Reserve Bank of Australia (RBA) will stimulate Australian property investment and other sectors by cutting interest rates for a third time next month have been questioned by an expert.

 

 

Chris Richardson, economist and director of Deloitte Access Economics, told the Adviser he expects the central bank to remain cautious until further information is available.

 

 

He added that he was dubious about the markets predicting another rate cut in February.

 

 

Furthermore, Mr Richardson pointed out that any move from the RBA would be contingent on the economic situation prevailing in Europe.

 

 

"Rate cuts haven't necessarily stimulated the property market as the RBA would have hoped. The board may prefer, moving forward, to leave rates on hold and see what happens in Europe," said Mr Richardson.

 

 

RP Data's Tim Lawless recently pointed out that a comparative study of Australian statistics with those from around the world indicates the market will not slump too heavily in 2012.

 

 

Posted by Craig Francis

 

 

- property, rates, interest, RBA, banks

DISCLAIMER: All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

COPYRIGHT: All information provided is protected by international copyright laws. You may not copy, reproduce, distribute, publish, display, perform, modify, create derivative works, transmit, or in any way exploit any such content, nor may you distribute any part of this content over any network. Copying or storing any content is expressly prohibited without prior written permission of SMATS Group or the copyright holder identified in the individual content's copyright notice. For permission to use the content on please contact info@smats.net.

中文

Subscribe Now