At its board meeting today, the Reserve Bank of Australia decided to leave the cash rate unchanged at 2.25 per cent following last month’s 0.25 per cent reduction.
"At today’s meeting the Board judged that, having eased monetary policy at the previous meeting, it was appropriate to hold interest rates steady for the time being," said RBA Governor Glenn Stevens. "Further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target. The Board will further assess the case for such action at forthcoming meetings."
LJ Hooker CEO Grant Harrod said last month’s decision to drop rates to an all time low was already having a positive impact on sales, with the national auction clearance rate now 77.7 percent, which is higher than the 2014 average of 65 percent. “Our agents have reported a great turn out at open inspections during the past month, especially from investors," Harrod said. “Real estate comes down to the old adage of supply and demand and in many markets demand is still outstripping supply."