Perth Property Investors, First Home Buyers Winners – More Rate Cuts in 2015
Lower interest rates will give a theoretical boost to the Perth property market while confidence falls in the first few months of 2015.
Perth property investors and first home buyers are likely to be encouraged to stoke building activity in the coming months, as borrowing costs fall to their lowest level in generations.
Data suggests the RBA may cut rates again in 2015, with markets predicting there is a 60% chance of rates falling to 1.75% later in the year.
In it’s quarterly statement released Friday afternoon in Sydney, the Reserve Bank of Australia said it could not rule out more rate cuts in 2015.
“The board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time,” the RBA said.
Thought the RBA said its quarterly outlook of the Australian economy was still strong, the economy was growing slower than expected due to government spending cuts and lower private sector investment.
The May 8 RBA statement said the outlook for Australian dwelling investment was up, driven by lower interest rates and strong population growth.
The RBA also said that the Australian jobs market looked stronger than previously forecast in the months ahead.