{"id":29434,"date":"2020-12-02T09:53:16","date_gmt":"2020-12-01T20:53:16","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=29434"},"modified":"2020-12-02T09:53:16","modified_gmt":"2020-12-01T20:53:16","slug":"cash-rate-not-expected-to-lift-for-three-years","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/cash-rate-not-expected-to-lift-for-three-years\/","title":{"rendered":"Cash rate not expected to lift for three years"},"content":{"rendered":"

PHOTO: \u00a0Reserve Bank of Australia (RBA)\u00a0<\/strong><\/p>\n

After a year of historic decreases, the Reserve Bank of Australia (RBA) Board has decided to keep the cash rate on hold at a record low of 0.1 per cent at its December meeting, with the expectation that rate is unlikely to lift for the next three years.<\/strong><\/p>\n

\u201cGiven the outlook for both employment and inflation, monetary and fiscal support will be required for some time,\u201d RBA Governor Philip Rowe said.<\/p>\n

\u201cFor its part, the Board will not increase the cash rate until actual inflation is sustainably within the 2\u00a0to 3\u00a0per\u00a0cent target range.<\/p>\n

\u201cFor this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market.<\/p>\n

\u201cGiven the outlook, the Board is not expecting to increase the cash rate for at least three\u00a0years. \u201c<\/p>\n

CoreLogic\u2019s<\/a> Head of Research Tim Lawless\u00a0has labelled it a \u2018wait and see\u2019 policy.<\/p>\n

\u201cFrom a housing market perspective, home buyers are clearly responding to the unprecedented levels of stimulus available,\u201d Mr Lawless wrote.<\/p>\n

READ MORE VIA ELITE AGENT<\/a><\/p>\n

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