By Robert Carry
Yesterday's rate rise by The Reserve Bank of Australia's (RBA will do nothing to boost the supply of housing, which is essential to moderate existing house price and rent pressures, the Housing Institute of Australia's (HIA) chief economist has claimed.
The HIA's Harley Dale pointed out that the new home building recovery will fall well short of the underlying requirement for new dwellings. He continued, "After today's increase, it would be prudent for the RBA to sit on its hands and assess economic developments domestically and globally."
Dale said the impact of rising interest rates can fall "very unevenly" on different sectors of the economy, consumers and small businesses.
"There is no justification for retail lenders to act off their own bat and move rates beyond the change in the official cash rate," he added.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.
We value your privacy and treat all your information seriously - you can check out