|
RBA rate rise will hurt NSW property market
Real Estate Institute of NSW President, Mrs Cristine Castle, said today that the Reserve Bank of Australia’s decision to increase interest rates by one quarter of a percent will hurt NSW’s recovering residential property market.
“This rate rise will hurt homeowners and homebuyers in NSW and will further damage the State’s economy,” Mrs Castle said.
“It is senseless for the RBA to punish NSW residents for the mining fuelled boom economies in Western Australia and Queensland and inflation fuelled by oil prices and bananas.”
“There must be a way of moderating fiscal policy in the boom States to curb demand rather than just use the blunt instrument of monetary policy to hit struggling families in NSW who are already feeling the pain of higher interest rates and higher fuel prices,” she said.
However, Mrs Castle said the interest rate rise would not have the dire consequences that some economic commentators are predicting.
“I do not see the price of residential property falling by 10% as some commentators are suggesting,” Mrs Castle said.
“Even with the quarter percent increase, interest rates are reasonably stable and
affordable and the next rate movement may well be downward. There should certainly be no need for another rate rise in the foreseeable future.”
|
|
|
|
|
|
| |
|
|