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.