Property Economics
May RBA Minutes point to weakness in housing market
May’s RBA board meeting minutes outline the rationale behind their 50bp reduction of the cash rate. The minutes note that the domestic economy had been growing at a modest rate in early 2012 however, the activity varied across industries. The mining sector remains strong with a number of large projects underway and on the drawing board.…
Read MoreRBA May Board Meeting – Rates cut by 50 basis points
At its meeting today, the Board decided to lower the cash rate by 50 basis points to 3.75 per cent, with a low inflation print and decreasing growth forecasts. The minutes point to expectations of lower inflation;
Read MoreHIA voice concerns over the decline in residential construction activity
In a one page bulletin produced last week, the HIA called for interest rate cuts and supply side reforms to arrest the on-going decline in residential construction activity in Australia. The HIA represents the construction industry and by proxy has a vested interest in construction activity; however there is growing evidence of supply side problems with concerns…
Read MoreRBA February 2012 Board Meeting Minutes
Much to the surprise of most economists, the RBA kept the cash rate steady in February. Information available since the December meeting confirmed that economic conditions in Europe were weakening late last year, with significant downside risks. In line with this, most forecasters have lowered their forecasts for world GDP growth this year to a below trend…
Read MoreRBA Commentary on the Investment Boom in the Resources Sector
In his speech today to the Committee for Economic Development of Australia, RBA Deputy Governor Philip Lowe gave some interesting commentary on recent developments within the Australian economy. Specifically interesting were his comments regarding the indirect effects of the investment boom in the resource sector:
Read MoreHousing State of Supply Report 2011
Yesterday saw the release of the National Housing Supply Councils 2011 State of Supply report. The National Housing Supply Council was established in 2008 by the Treasurer and the Minister for Housing to monitor housing demand, supply and affordability in Australia, and to highlight current and potential gaps between housing supply and demand from households.…
Read MoreReserve Bank December Board Meeting Minutes
In its last meeting on the 6th of December, the Board decided to lower the cash rate to 4.25 per cent citing a potential slowdown in China’s growth, sovereign credit and banking problems in Europe and precautionary behaviour by firms and households. Today the detailed board minutes note that the decision was a difficult one,…
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