Posted on Tuesday, December 7th, 2010 in by Matt Garmony
The RBA decided to leave the cash interest rate unchanged at 4.75% after the major lenders lifted their rates higher than the RBA’s 25 basis point rise last month. The RBA Govenor advised that interest rates are more likely to rise and not fall in 2011 as the outlook for the global economy, particularly Asia is for positive growth. In our opinion, potential rising interest rates will continue to produce subdued to slow growth in the residential property markets, with slight increased investment in the commercial sectors.