The Reserve Bank of Australia left interest rates unchanged for the third month in a row at their June meeting.
Inflation remains a concern for them, however they believe that economic factors have now normalised and that keeping rates on hold is the better policy at this stage.
The Australian property market has been almost on hold itself since the reserve lifted rates in February and again in March 08 by 0.25% each time, which scared many buyers out of the market.
The latest hold will begin to reinstate confidence in the market and the strong underlying demand from the record incoming migration and increasing populations will start to resurface across Australia.
With the Rudd Government announcing its desire to bring in an additional 30,000 migrants this year, housing is likely to remain under great pressure to cope with this and we can expect to see the current tight rental market and steadily rising prices to continue in the medium to long term unless some major stimulus to supply is addressed.
This will likely see Australia remain as the safest global property market amongst all the turbulence in the world.
Click here to view the Reserve Bank Statement
