The Reserve Bank decided to keep the cash rate on hold at 2.5% in yesterday’s meeting, extending the interest rate’s streak to a year, allowing the nation to enjoy one of the longest periods of stability on record. The last time the cash rate was this stable was when it was pegged at 5.5% from March 2005 to May 2006. Majority of economists are predicting gradual increases in the cash rate in 2015.
House prices over the year have increased to 10.9% as a result of the record low rates. Real estate agents are confident that the recent interest rate announcement will entice more activity in the property sector.
Read more about this on the Sydney Morning Herald website.