Rates set to hit record low 0.75pc

first_imgCoreLogic chief economist Tim Lawless expected housing values to continue to recover, listings to grow and sales activity to trend higher.But he said, “credit availability remains the wildcard in a material bounce back in turnover”.“Although credit policies have become a little looser, gaining loan approval remains a challenge for many borrowers, despite the lowest mortgage rates since the 1950s.” FOLLOW SOPHIE FOSTER ON FACEBOOK The:RBA board monetary policy decision will be announced at 2.30pm AEST.CBA Economics expected the cut “because labour market slack is increasing” and because of currency issues.“Our previous research indicates AUD could jump by 0.4 per cent if the RBA does not cut,” a CBA Global Markets Research statement said. “We are wary of this risk given last week’s small spike in NZD following the RBNZ’s decision to keep the cash rate steady and deliver a neutral statement.”Financial markets were already pricing in a cut, with “the ASX 30 Day Interbank Cash Rate Futures October 2019 contract trading at 99.190, indicating a 78 per cent expectation of an interest rate decrease to 0.75 per cent”, according to the ASX Rate Indicator. Number of homes sold for profit set to rise MORE: New top sale notched for coast Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHow much do I need to retire?00:58center_img House prices have begun rising across major capital cities Sydney, Melbourne and Brisbane despite the slowest monthly credit growth on record.Latest housing credit figures showed growth was “the slowest in the history of the data set”, rising 0.2 per cent in August to 3.1 per cent higher over the year. Owner‑occupier credit was up by 0.3 per cent in August and 4.7 per cent for the past year, while investor credit went backwards for the second consecutive month, down 0.1 per cent/month.Final dwelling price index results for September were also due Tuesday, but the CoreLogic Daily Value Index was yesterday showing a 0.63 per cent rise for the quarter so far out of Brisbane, 3.39 per cent out of Sydney and 3.52 per cent for Melbourne, with the five capital city aggregate up 2.28 per cent in the quarter.More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours ago The fear is that if the RBA doesn’t cut rates Tuesday, the Aussie dollar could rise.The Reserve Bank is set to cut the official interest rate to a historic low 0.75 per cent Tuesday after data showing two cuts mid-year failed to spark a bounce and as house prices start to rise.Experts predict the RBA board will move on a 0.25 percentage point cut to the official cash rate target, pushed by weakening job market figures and to stave off any rises in the Australian dollar (AUD). Emotions run high as 1890s home soldlast_img