The Reserve Bank is set to deliberate upon further interest rate cuts in a February board meeting, and experts are unanimous in their predictions. Here’s what the experts have to say, according to the Property Observer.
Chief economist for AMP Capital Shane Oliver believes the interest rates will remain on hold, 6 months after the rate cuts were announced in August of last year. House prices have increased for the last quarter, showing that the interest rate effect has flowed through the property sector. He predicts an interest rate hike around October of this year.
Angie Zigomanis, Senior Manager for BIS Shrapnel also believes that interest rate cuts will be very unlikely as the nation’s inflation report surprised analysts. Since the property sector is expected to moderately grow this year, no other sector is seen to offset those changes. Chief executive officer of RateCity Alex Parsons share the same sentiment based on the country’s inflation.
Andrew Wilson, Senior Economist for Australian Property Monitors believes that the Reserve Bank will hold off against any interest rate cuts, as the 2014 economic landscape has yet to shape up at this time of the year, but he also believes that a rise in interest rates because of inflation is very unrealistic and is very unlikely to happen in the near future.
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