Oliver Searles - Perth Real Estate Agent

Fantastic news. The Reserve Bank of Australia has just reduced interest rates by 0.5% to make the official cash rate 3.75%. Now lets hope that the banks pass on the rate reductions.

According to the Australian Bureau of Statistics the inflation rate in Perth decreased from 2.9% in the December quarter 2011 to 1.9% for the March quarter 2012. This figure is the 2nd highest among Australian Capital cities but a good figure considering rents rose 5% for the quarter and 10.5% for the year.

Overall the Australian annual figure is 2.2% which is well in the Reserve Bank of Australia key band of 2-3% which should hopefully lead to future interest rate cuts.

The Reserve Bank of Australia today announced that it would be leaving interest rates unchanged at 4.25%. They have kept this rate despite a weakening of the Australian economy and below average growth expected in the world economy.

According to a recent study by Genworth only 1 in 5 homebuyers has experience mortgage stress over the last 6 months down from September last year. Homebuyers are however still concerned about higher living costs and unemployment fears. The researchers behind the study were confident however that confidence levels would be up in another 6 months time as well. All in all good news for the Perth property market.

The Reserve Bank of Australia left interest rates unchanged today at 4.25%.