Business

RPData doubts the RBA will cut rate

PROPERTY researchers RP Data has warned not to expect an interest rate cut from the Reserve Bank when it meets on Tuesday.

National research director Tim Lawless said latest data showed some improvement in house values within Australia's five largest capital cities.

These healthy signs are likely linked to some confidence that interests rates will - for now at least - stay relatively low.

So it also means a significant rate hike is probably just as unlikely.

"Improving housing market conditions are likely to be front and centre on the agenda of discussion items when the Reserve Bank board meets on Tuesday," he said.

"The bank would be looking to avoid any further stimulation of the housing market while at the same time ensuring the interest setting is appropriate considering the high Australian dollar and slugging level of consumer demand."

Topics:  cash rate interest rates rba rpdata



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