RBA Rate Cuts Under Pressure
Australian house prices are continuing to rise, and lower inflation could put pressure on the Reserve Bank of Australia (RBA) to cut interest rates soon.. Recent data suggests inflation may drop significantly, driven by government cost-of-living subsidies, potentially pushing the rate from 3.8% in June to 2.1% in September.
PropTrack data shows national home values climbed 8% over the past year, with significant variations across regions. Perth and Brisbane saw surges of 25% and 16%, respectively, while Melbourne values declined slightly by 0.5%.
As inflation temporarily dips into the RBA’s target range, markets are betting on a possible rate cut by November. RBA Governor Michele Bullock, however, remains cautious, stating that “a rate cut was ‘not on the agenda in the near term,’” despite market expectations. The ongoing debate highlights concerns that prematurely lowering rates could lead to a repeat of the 1970s' inflationary surge, driven by unchecked government spending.
Australian house prices are continuing to rise, and lower inflation could put pressure on the Reserve Bank of Australia (RBA) to cut interest rates soon.. Recent data suggests inflation may drop significantly, driven by government cost-of-living subsidies, potentially pushing the rate from 3.8% in June to 2.1% in September.
PropTrack data shows national home values climbed 8% over the past year, with significant variations across regions. Perth and Brisbane saw surges of 25% and 16%, respectively, while Melbourne values declined slightly by 0.5%.
As inflation temporarily dips into the RBA’s target range, markets are betting on a possible rate cut by November. RBA Governor Michele Bullock, however, remains cautious, stating that “a rate cut was ‘not on the agenda in the near term,’” despite market expectations. The ongoing debate highlights concerns that prematurely lowering rates could lead to a repeat of the 1970s' inflationary surge, driven by unchecked government spending.