The Reserve Bank of Australia has left the official cash rate unchanged at 2.5%, in line with analysts’ predictions.
It is the fourth month in a row the Bank has left rates unchanged at a 53-year low.
The Bank has previously cut rates in August 2013, May 2013, December 2012, October 2012, June 2012, May 2012, November 2011 and December 2011.
Raine & Horne CEO, Angus Raine, said that this is a sign of confidence in the Australian economy, and the role property is playing in the transition away from its mining sector dependence.
“News that some markets took a breather in November will be noted by the RBA, however it’s fair to attribute some of this trend to the disruptive impact of Festive Season celebrations, horse racing carnivals and the like on the business of real estate at this time of year,” said Raine.
“The situation with price growth in November also underscores the message that Sydney real estate is a significant distance from a boom scenario. This year, we’ve had growth closer to 12 percent, which represents a moderate, expansion phase in the property cycle. Compare this to the boom year of 2002, when Sydney real estate prices grew by 22%,” he said.
This comes as no surprise to a number of different economists and sources who predicted the rate would remain stable.
Finder.com.au’s spokesperson Michelle Hutchison said that all nine economists who took part in their survey were correct, predicting rates to remain stable.
“They also told finder.com.au that they think the next rate change will be an increase, with seven out of the eight experts betting on the next rate rise in 2015, while one said it could be in the second half of next year,” she said.
This article first appeared on Property Observer.