RBA Rate Holding Pattern Aligns with Australian Property Price Reality Check
While the Australian property market continues to cool after record price hikes, the Reserve Bank of Australia (RBA) has decided to leave rates on hold. Now, while the RBA decision is associated with many factors such as inflation, unemployment, the Aussie dollar value, retail spending, business investment and the global economy, just to name a few, the housing market is also a major consideration. Why? Well, firstly the RBA estimates that the Australian property market is the nation’s largest asset with a value of around $6.8 trillion. Secondly, of this amount, there’s approximately $1.7 trillion in outstanding home loans, which accounts for approximately 60% of Australian lending assets.
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