23.01.2013 - Australia: RBA likely to avoid February rate cut with home prices up 1.3pct since start of year
The Reserve Bank is likely to leave the cash rate on hold in February as previous cash rate reductions starting to flow through into rising property prices, says CommSec economist Craig James. According to the RP Data-Rismark Daily Home Value Index, capital city property prices are up 1.3% in the first three weeks of the year, though the results are lumpy across different capital city markets. James says rate cuts, an improvement in confidence, better global news, an improved share market performance and a more positive start to the year are the key factors why home prices have risen to their highest level since early November 2011...............................................Full Article: Source
Print