The Reserve Bank of Australia's (RBA's) decision to keep the cash rate on hold at 4.75 per cent makes sense, according to the Housing Institute of Australia (HIA).
Andrew Harvey, senior economist at the HIA, explained that this is the sixth meeting in a row when the RBA's board has decided to leave the cash rate as it is.
"It just gives a touch of relief to those Australians paying off mortgages and also to those trying to enter the housing market, amidst the less predictable environment households face in the post-global financial crisis era," he said.
Mr Harvey added that the worst thing that the bank could do is to increase the cash rate in the near future as this would prevent more new Australian property from being built.
Last month, the HIA - JELD-WEN New Home Sales Report revealed that sales of new property in Australia improved in April.
Posted by Craig Francis
Andrew Harvey, senior economist at the HIA, explained that this is the sixth meeting in a row when the RBA's board has decided to leave the cash rate as it is.
"It just gives a touch of relief to those Australians paying off mortgages and also to those trying to enter the housing market, amidst the less predictable environment households face in the post-global financial crisis era," he said.
Mr Harvey added that the worst thing that the bank could do is to increase the cash rate in the near future as this would prevent more new Australian property from being built.
Last month, the HIA - JELD-WEN New Home Sales Report revealed that sales of new property in Australia improved in April.
Posted by Craig Francis
