The real estate industry is reportedly to be doing good which means that those companies engaged in Perth bathroom renovation will also benefit from this positive news. One of the main driving forces behind this improvement is the Reserve bank’s freeze of interest rates thrice in a row. The official rate is at 2 percent which has been recorded as a historic low.
What experts say
This move by the board was predicted by experts long before who commented that the Reserve bank will be holding the interest rate throughout the middle of the year. Governor Glenn Stevens commented that while the Australian economy is continuously expanding at an average pace, there is still a slow growth rate experienced. He further stated that domestic inflationary pressures are continuously contained and that experts are hopeful that the economy has a little capacity to spare.
With an economic threat looming, monetary policies by the Aussies should be flexible and accommodative. Low interest rates are maintained in order to support investor borrowing and buyer spending. Overall, credit activities have a moderate growth. There is a steady growth in the housing sector in the past few months. In Sydney, the housing prices are rising strongly. However, this trend has not been sustained by other key cities.
The Board at the Reserve Bank judged that leaving the rate unchanged was the appropriate measure to the current situation of the country. The Australian economy has been quite in focus and is under great scrutiny. The member of the Board will conduct further assessment of the economic and financial conditions of the country and would then announce to the public any changes to the current interest rate. The decision will of course be aligned with the condition at hand as well as the target growth for the country and issues on inflation will have to be evaluated.
This decision of the Board was received positively. However the results that followed in the housing industry was mixed. Both Melbourne and Sydney continue to flourish in their campaign for an improved housing sector while other major areas in the country continue to experience subdued rates.