The Reserve Bank of Australia has made its first call on the official cash rate for this year, following its decision to cut the rate to a record low in November.
RBA’s 30% property growth forecast to materialise in 75% of regions
By Maja Garaca Djurdjevic
21 January 2021
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1 minute read
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Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions.
According to a document released by the Reserve Bank of Australia (RBA) last Friday, following a Freedom of Information request, a permanent 1 percentage point (100 basis point reduction) cut in the official rate could increase real housing prices by 30 per cent over three years.
With the RBA clearly alert to the risks from low interest rates, property experts believe the bank’s predictions are fairly accurate.