CPI suggests interest rate cut

October 28th,2015

According to the Real Estate Institute of Australia, the September 2015 quarter CPI figures confirm the RBA Board’s assessment at its October meeting that inflationary pressures are well contained and are likely to remain within the RBA’s target over the next one to two years.

REIA President, Neville Sanders, says “this raises the possibility of an interest rate cut and certainly a sustained period of low interest rates which is good news for home owners.”
“In the September quarter, the CPI rose by 0.5% and an annual rate of 1.5%. These figures are well below the RBA’s target zone of 2-3% and should ease any pressure on the interest rate outlook,” Mr Sanders said.

“The annual changes for the analytical series of trimmed mean and for the weighted median were 2.1% and 2.2% respectively. In the case of the trimmed mean this is the lowest annual increase since the series was introduced in June 2003 and for the weighted mean the lowest since June 2012,” Mr Sanders said.