The Reserve Bank of Australia has decided to keep interest rates on hold at 3%.
I have concerns that the economy has plenty of down side to come and along with former Coalition Leader Dr John Hewson, I have been quite vocal about the need for interest rates to be reduced to mirror those throughout the developed world.
Australia is not out of the woods as yet and in many ways we have yet to experience even a minor part of what is possible. Housing volume sales are down throughout the country as are prices in the most sought after non-first home owner suburbs.
I have also been concerned about the latest consumer spending figures showing growth, without the distinction of cash vs credit. It is dangerous and absent minded to applaud the Governments’ stimulus package and increased levels of consumer spending if it is resulting in further and deeper levels of debt. After all, isn’t that the reason we are in the current worldwide mess? It is certainly food for thought!
Michael Marquette on +61 433 170 170
Marquette Turner Luxury Homes on MarquetteTurner.com