The Reserve Bank Of Australia (RBA) has met again today and — once again! — has left official interest rates on hold at 1.5% p.a.
As we have said for most of 2017, official rates are unlikely to move in a hurry, as the world suffers from sluggish inflation and high asset prices in a post-GFC world.
Despite some recent increases in commodity prices, wages growth remains anaemic. This signals that the Aussie economy is likely to continue to grow in 2018, albeit at a pace that is not going to give Usain Bolt any concerns.
Keeping with our predictions throughout the year, we expect official interest rates to remain at or near their current levels for some time to come. That being said, APRA’s signals to the banks — and the banks’ subsequent moves to reduce investor activity via increased interest rates and tougher lending criteria — are likely to persist into 2018.
In fact, 2018 seems it will be an interesting year for property investors, with the headwinds of APRA, high asset prices, high household debt and low wages growth battling the tailwind of lower interest rates for longer on the cards. Obviously, in any market opportunities and risks abound.
2018 looks like it will be a year where the wheat may be well and truly separated from the chaff.
Given that money usually flows from the undereducated to the educated — and from those without plan to those with a clear strategy! — now is the right time to be talking to one of our experienced Senior Property Mentors. To book your complimentary strategy session, click here!