Australia: Key Points from RBA 7 October 2014

Posted by Sean Lim on September 25, 2017
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Reserve Bank of Australia (RBA) released a media statement on 7 October 2014. It was keenly anticipated with many watchers on their views on interest rates and any property measures to cool the market. Let's look at the property-related key points from the speech by Glenn Stevens, Governor.

Key Points

  • Cash rate remains unchanged at 2.5%

  • Monetary policy remains accommodative

  • Interest rates are very low and have continued to edge lower over recent months

  • Dwelling prices have continued to rise over recent months

  • The exchange rate has declined recently, but remains high by historical standards

  • Exchange rate is not helping as expected in achieving balanced growth in the economy

  • Continued accommodative monetary policy

  • The most prudent course is likely to be a period of stability in interest rates

 

Collectively, these are music to the ears of property investors in Australia. There is no language to suggest rates should rise, exchange rate should be higher or monetary policy should be tighter. Instead, we have every reason to expect the market conditions for property investment to be accomodating. Would it be a good time to choose mortgage in Australia dollar? Or is Singapore dollar-denominated home loan still attractive? Compare the rates here.

 

Australia mortgage

Topics: Australia

Written by Sean Lim

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