Australian Mortgage News from Xinc

Here is a peice that i received from Xinc which we have some dealings with

Reserve Bank of Australia sounding more optimistic

By Jennifer Nielsen, CEO Xinc (Australias Largest Mortgage Broker)

At its meeting on 1st July, the Reserve Board decided to leave the cash rate unchanged at 7.25 per cent. Probably the most important outcome of the meeting was not what was said, but rather how it was said. For the first time this year it seems that the RBA is more convinced we have not only reigned in our spending, but are in fact subdued, “Inflation is likely to remain relatively high in the short term, and the CPI will be further boosted in coming quarters by the recent rises in global oil prices.

Looking further ahead, inflation in both CPI and underlying terms should decline over time, provided demand continues to evolve as expected. On balance, while the inflation outlook remains concerning, the Board’s assessment continues to be that demand growth will be moderate this year.” So, this month’s bet is rates on hold for the foreseeable future. I wouldn’t be betting on a reduction any time soon though.

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