 Halt interest rate hike
The Reserve Bank decided today to put on hold any interest rate hike. According to RP Data analyst Cameron Kusher this decision is influenced by the raft of less positive economic data both domestic and international since last month.
Kusher said that the rate of property value growth slowed in May, increasing in capital cities by just 0.2% during April.
The Housing Industry Association (HIA) chief executive Graham Wolfe said the increasing interest rates had slowed down new housing activities.
``We do not believe this is an objective RBA would like to see achieved,’’ Wolfe said.``At the same time there is no justification for major banks to lift interest rates independently of the RBA, especially when their actions in curtailing lending for residential development are already harming the new home building recovery,’’ he said.
On the other hand, Real Estate Institute of Australia (REIA) president David Airey said the RBA should likewise look into the consequences of rate rises on home buyers the same way it concerns itself to meet the inflation targets.
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