The Reserve Bank's decision to cut its official interest rate to a record low is good news for housing affordability, but will not do much to drive a recovery in Perth or the state's housing market, experts have said.
John Nicolaou, ACIL Allen Consulting executive director in WA, believed the 0.25 percentage point rate cut would only affect the state's economy and housing sector at the margins.He said the impetus for long-term growth would come from ensuring the resources sector was on a firm footing, and state and federal policies encouraged greater investment to boost jobs.
"Ultimately, interest rates were already very low and so I think the community at large will be relatively immune to interest rate cuts unless they are of a particular scale of magnitude," Mr Nicolaou said.
. Do people not understand what they're saying? 'Kickstarting the property market' is a BAD thing for society - debt up, economy down. Kicking the property market in the guts is GOOD for society - cheaper housing, less debt, more to spend on goods & services, more jobs. .
NicPerpitch JANicolaou Population growth from a high immigration program: 2012: 1.83 m, 2018: 2.28 m The mining construction boom caused high inflation in housing sector. Now, annual mineral exports don't create many jobs. New economic model needed
I still remember how APRAinfo morons killed our investment market with their regulations punishing local property investors. Now pls face the consequences
Shame we didn't hear the 'experts warning' when the criminal banking sector was coercing households and individuals into debt they could never repay. All aided and abetted by gov't. Now they want you to get into MORE debt!
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