RBA: Interest rates easing cashflow

Tuesday 16 June 2009

Article by Mozo

The record interest rate cuts seen in the months that followed the financial crisis have helped to put more money in people’s pockets, the Reserve Bank of Australia (RBA) reports.

In the minutes from its most recent meeting, published yesterday (June 16th), the RBA pointed to a poll of retailers which suggested that business has picked up considerably in the last three months, with Aussies happy to splash their spare cash once more.

Meanwhile, looking to the housing sector, the RBA viewed signs of continued improvement in the second quarter of the year, with new build properties proving particularly popular among first-home buyers.

"In addition, housing loan approvals had picked up recently for both repeat buyers and first-time buyers," the RBA remarked, adding that there had also been a modest improvement in house prices.

Despite the RBA’s broadly positive view of real estate, news.com.au commentators slammed another report released yesterday by BIS Shrapnel which forecast market growth of nearly 20 per cent.

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