Property Industry Unhappy With RBA Holding Pattern
Industry figures have labeled the Reserve Bank’s Melbourne Cup Day decision to leave home loan rates on hold as disappointing.
Aussie Home Loans boss John Symond slammed the RBA's decision to hold the cash rate at 3.25 percent, accusing the RBA of not being in sync with what is happening in the real economy.
His criticism was followed by that of Sydney estate agent John McGrath, CEO of McGrath Estate Agents, who claimed the housing recovery had been limited to the more affordable end of the market. Mr McGrath said there was no depth in the market for properties above the $1m price tag.
McGrath says a further two rate reductions in the short term would allow the market to gain some momentum, thus provide activity and confidence the housing market and associated sectors. “I hope that they reduce rates pre-Christmas and again in early 2013 to give borrowers the incentive they need,” he said.