The Reserve Bank has decided to keep the cash rate unchanged at 0.75% during its December 2019 board meeting.
The cash rate remains at the same level for the third straight month despite the RBA Chief tipping that further cuts are likely to happen during the major conferences and meetings these past few months.
This is a tough decision in context to the biggest surge in the Australian housing market, which recorded an increase of 6% over the last 3 months; however, the economy is decelerating, the job market is weak (unemployment rate at 5.3% compared to the 4.5% target and the number of job ads recorded 13% lower than last year) and the retail sector is stagnant despite the festive season around the corner.
The RBA is worried that another cash rate cut may trigger a further boost in the housing market, which may create systematic risks in the economy, including alarming levels of household debt and housing unaffordability.
RBA will closely monitor the housing market, along with the job market and household consumption in the coming months to determine the cash rate in the first month of 2020.
Get in touch to find out how we can help you on your property journey.
If you like this post, we’d love it if you could share :)
Disclaimer: All data and information provided on this site is for informational purposes only. Milk Chocolate makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.
