Reaction to the RBA’s decision to keep interest rates on hold has come in thick and fast, with commentators labelling it as a missed opportunity to boost the property market.
The RBA was widely tipped to cut the official cash rate by 0.25%, and the bank’s decision to keep the rate on hold at 4.25% has caused quite a stir.
Residex CEO John Edwards has labelled the RBA’s decision as “a missed opportunity to boost sagging property markets”, adding that property markets around the country are at a tipping point.
“The property market is on a knife edge. A rate cut would have had an important impact on affordability and boosting confidence,” said Edwards.
“Most Australian borrowers are on variable rate loans so any change can have an immediate impact,” he added. “As housing is particularly rate sensitive, rate cuts can be an important confidence boost for buyers and sellers.”
With Residex data suggesting that last year’s dual rate cuts are starting to have an impact on the property market, Edwards suggested that confidence in the market may now disappear on the back of the surprise rate hold.