PHOTO: Sydney home prices have fallen nearly 14 per cent since peaking in July 2017. Picture: Sam Mooy Source:AAP
The Reserve Bank of Australia has decided to keep the cash rate on hold but it remains under pressure to make a later cut. And when it does it could be a game changer for the housing market.
The Reserve Bank failed to pull the trigger on a rate cut today but it is “only a matter of time” before a future cut fuels an improvement in capital city property markets, economists claim.
The RBA announced at its monthly board meeting this afternoon that the cash rate would be kept at 1.5 per cent, but housing experts said the bank was merely delaying the inevitable and a cut was imminent.
Among the chief motivators for a reduction was zero inflation reported for the March quarter and a widening of the housing slump to regions outside Sydney and Melbourne.
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