The Reserve Bank of Australia board have announced that they have elected to leave the cash rate on hold at their board meeting today.
In the official statement the Reserve Bank Governor Philip Lowe made some encouraging comments on the state of the Australian economy.
His statement read:
” The outlook for the Australian economy is little changed from three months ago. After a soft patch in the second half of last year, a gentle turning point appears to have been reached. The central scenario is for the Australian economy to grow by around 2¼ per cent this year and then for growth gradually to pick up to around 3 per cent in 2021. The low level of interest rates, recent tax cuts, ongoing spending on infrastructure, the upswing in housing prices in some markets and a brighter outlook for the resources sector should all support growth. “
These are positive words which will bolster demand for property as the property price upswing continues to gather momentum in markets across the country. Earlier today we commented on a report published by JLL Advisory on the state of the Brisbane new apartment market which was very positive. You can find that article here.