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As expected interest rates have been kept on hold at the Reserve Bank of Australia’s June board meeting as the property market corrects itself.

REINSW President Leanne Pilkington said she expects to see the RBA leave interest rates in a holding pattern for the next 12 months. 

“The housing market, from a number of key indicator perspectives, has peaked,” Ms Pilkington said.

“Prices are easing, clearance rates have dropped, and residential building approvals for April 2018 showed a 5 per cent decline, which is more pronounced than most expected. 

“We’re seeing the market correct at the moment, but in a sustainable, soft-landing way. Raising interest rates prematurely could jeopardise this soft landing, therefore we expect no changes to interest rates until at least April 2019 where we could see an upward movement,” Ms Pilkington said. 

The RBA board will next meet on Tuesday, 3 July 2018.