Phone:(08) 9293 2922

Latest News

Australian cash rate on hold - bank mortgage rates, home prices and implications for investors
28/04/2017

Australian cash rate on hold - bank mortgage rates, home prices and implications for investors

article by Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital.

The attached note looks at the outlook for the official cash rate in Australia along with recent bank mortgage rate hikes and the impact on home prices.

The key points are as follows:

  • The RBA has left interest rates on hold. The arguments to cut or hike rates are evenly balanced and we can't see an official rate hike until second half 2018.
  • For the RBA to hike rates just to slow the Sydney and Melbourne property markets at a time of softness elsewhere would be madness.
  • But various threats to the hot Sydney and Melbourne markets are growing and point to slowing price gains.
  • For investors: bank term deposits offer poor returns; remain wary of the $A; and shares, commercial property and infrastructure continue to offer attractive yields.
Click here to read the full article

How to find us