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PHOTO: A rate cut will boost demand, but to a more limited extent than before. Picture: Jonathan Ng Source: News Corp Australia
The Reserve Bank of Australia’s move to cut the cash rate to a record low will help the housing market recover earlier but will not reignite another price boom, housing experts claim.
Governor Philip Lowe announced at the Reserve Bank’s monthly board meeting Tuesday that rates would be cut by 25 basis points to an unprecedented 1.25 per cent.
It was the first time the RBA changed the cash rate since August 2016, with the bank saying the move was necessary to support employment growth and bring inflation back to target levels.
READ MORE VIA NEWS.COM.AU