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Bi Monthly Market Update | The RBA holding rates – a welcome pause!

By Jody Fewster

The RBA holding rates – a welcome pause!

  • Despite global uncertainty around growth and inflation, the US economy remains strong. Inflation is coming down, albeit slower than desired but without causing a recession. US unemployment was 2.7% in May, up from 2.5% in December with June numbers out this Friday.
  • The RBA left our interest rates on hold at 4.1% quoting a “substantial slowing’ in household spending despite the tight labour market conditions and wage increases.
  • With inflation at 5.6%, unemployment down to 3.6% and building approvals soaring 20.6% in May plus pay rises for workers on enterprise bargaining agreements the highest in 11 years, I’m predicting another rate rise in August.
  • Other Central Banks have pushed rates to 5% or more, The US Federal Reserve is at 5.25%, Bank of England sitting at 5% and Bank of New Zealand is at 5.5%.
  • The S&P ASX -200 is down as I type at 7,250 and the Aussie dollar edged lower yesterday to US 66.8c.
  • The housing market eased after last month’s interest rate rise with the rate of growth in all capital cities declining. Listings remain incredibly low which bodes well for Perth prices.
  • Perth recorded the biggest annual rental price jump in Australia – rents are up 15.6% year on year.
  • We can help you prepare your home for a Spring Sales Campaign, so call me to see how we can get to work for you today.
Authored by Jody Fewster
Please call 0414 688 988 if I can provide you with a current market appraisal and detailed marketing plan for your home or investment property.
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