Posted on Tuesday, December 4th, 2012 in by Matt Garmony
TODAY’S 25 basis points rate cut means the official cash rate is now 3 per cent, the same level as at the peak of the financial crisis. While economists were expecting the Reserve Bank (RBA) to lower interest rates, the cut does highlight a weakened economic outlook.
Licensed Valuer & Managing Director of Garmony Property Consultants, Matt Garmony said with many businesses recording reduced profit margins and tightening their purse strings, any increased spending on commercial projects might still be some time off even with the rate cut.
However, various recent property statistics indicate subdued to slight increases in residential property values in the major capital cities between 0.1% to 1% (with the exception of Hobart) for the month of November, would suggest that the interest rate cut today should point to continued property market conditions, particularly in the Perth metropolitan area in the short term provided the financial institutions pass on a majority of the RBA cut to consumers.
Treasurer Wayne Swan said the central bank’s decision to cut the cash interest rate follows the Federal Government’s prudent management.
“Today’s rate cut from the Reserve Bank is the early Christmas present that hard-working Aussies deserve,” Mr Swan told reporters in Canberra.
The licensed valuers at Garmony Property Consultants in Perth can assist you with pre-purchase and pre-sale valuations of residential, commercial and industrial property types along with rental valuation and property consultancy for your complex property matters.