Moderating lending activity may point to a rate cut

January 12th,2015

The latest housing finance figures released today by the Australian Bureau of Statistics (ABS) reflect moderating activity in the housing market. REIA President, Neville Sanders says, “Decreases were recorded in all states and territories except for Victoria and the ACT. Tasmania had the biggest fall of 1.3 per cent. The largest increase was recorded in the ACT – up 1.2 per cent.”

“With moderating housing lending and GDP growth below trend, inflation well within the RBA’s target zone, the RBA Board should be considering a cut in interest rates at its February meeting,” said Mr Sanders.