Record low rates of interest on mortgages are expected to continue, according to the Real Estate Institute of Australia (REIA).
Noting the results of the quarterly consumer price index (CPI) figures, it said that with inflation at the level that it is the Reserve Bank of Australia (RBA) should maintain current interest rate levels.
In the three months leading to September, the CPI rose by 1.2 per cent to 2.2 per cent. This is well within the RBA's target range for inflation of two and three per cent.
President of REIA Peter Bushby said: "With inflation well under control and a subdued economy, it’s appropriate that the RBA Board maintains interest rates at their present level when it meets on Melbourne Cup Day."
The RBA has made a number of cuts to its benchmark interest rate since 2011. Its most recent cut was in August 2013, when it reduced the benchmark rate to a record low 2.5 per cent.
Posted by Ravin Chatlani