Reserve Bank plays double jeopardy with housing market: API

Reserve Bank plays double jeopardy with housing market: API
Reserve Bank plays double jeopardy with housing market: API

The Reserve Bank's interest rate cut of 0.25 basis points could have further impact on the residential property market according to the Australian Property Institute.

API chief executive Mike Zissler said the record low rate is a double jeopardy play by the Reserve Bank as it will also push housing out of reach of many low income families as housing affordability becomes an even greater percentage of people’s incomes.

“There is little doubt it will have a positive impact on the housing and associated sectors," he said.

"The latest cut will, however, upwardly impact upon property values.

"If the intention is to stimulate the economy it is essential that banks pass the cut on and do so quickly."

Tags: 
Interest Rates

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