The Reserve Bank of Australia is likely to hold the cash rate steady in the near term, according to its governor.
Speaking on August 20 in Brisbane, Glenn Stevens asserted that leaving the interest rate steady for more than a year has helped to bring “stability” to the economy and has encouraged a pick-up in consumer spending and investment in the wake of the global financial crisis.
The March quarter of 2014 saw an 8 per cent lift in dwelling investment, he noted, observing that this points to signs of recovery in the market.
According to Mr Stevens, the current cash rate of 2.5 per cent is the lowest on record in Australia in 50 years, and it is expected to remain at this level for “some time yet” as the market continues to recover.
For investors, a steady and stable cash rate could mean that now is an excellent time to consider purchasing real estate in Bulimba.
Last month (July 28), the Real Estate Institute of Queensland (REIQ) reported that winter sales in Brisbane were “unusually robust” for this time of year.
Brisbane is a particularly appealing market, said REIQ Acting CEO Antonia Mercorella, because while house prices have increased by 6.8 per cent over the past year, the city remains a much more affordable option than the larger markets of Sydney and Melbourne.