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Interest Rate Update

The Reserve Bank has left the cash rate on hold today at it's record low of 2.0% as was predicted by most economists.

RP Data released in November revealed that after three years of solid price growth, home values in Sydney are now falling. With a 1 per cent drop over the past three months, houses were hardest hit – falling 1.4 per cent, while units bucked the trend increasing 0.6 per cent. This overall decline is in line with auction clearance rates also dropping in November.

We are unsure what to expect at the next meeting, and given it is in February we expect a lot of discussion about its likely outcome between now and then.

On that note, I would like to take this opportunity to wish you a wonderful holiday season and look forward to staying in touch in the new year.



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