The Reserve Bank has discussed the possibility of further rate cuts for next year, according to the recent release of their December 2 meeting – their last for the year.
The RBA decided to keep the interest rate at 2.5%, believing that this is enough to stimulate growth in the economy. However, further policy easing may take place early 2015 depending on the performance of key economic factors, such as the Australian currency and the inflation rate. The board members also agreed that the low interest rates have supported strong activity in the housing sector and that it is necessary to keep the rates at the current rate – and possibly lower, to support the strong market demand.
Read more about this on the Smart Property Investment website.