RBA holds rates at record low and maintain fiscal policy at September meeting
The RBA continued to hold rates at a record low 0.25 per cent and maintain its current policy settings at its September meeting.
Experts say they have never felt better about housing affordability around the country, according to Finder.com.au's RBA Cash Rate Survey of 40 experts and economists.
62 per cent of participants responded with positive sentiment about housing affordability, a record percentage since Finder first started collecting data on it in March 2018.
Graham Cooke, insights manager at Finder, said housing affordability is a two-way street.
“When experts feel good about housing affordability there are two ways to look at it.
“On the one hand, prices are down so those who are ready to buy or who want to negotiate rent are in a good position to do so.
“On the other hand, those who own or are looking to sell, may see that their property isn’t worth what it once was.
“What is certain here is that the drop in prices, rock-bottom rates and increased competition for non-investment buyers combined with government stimulus will likely get a lot of the next generation onto the housing ladder for the first time,” Cooke said.
Finder's Economic Sentiment Tracker gauges experts' confidence in five key indicators: housing affordability, employment, wage growth, cost of living and household debt.
CreditorWatch chief executive Patrick Coghlan says the RBA's decision to hold interest rates was a sensible measure to ensure cash stays in the economy as much as possible.
"This follows last month’s extension of the JobKeeper and JobSeeker schemes that demonstrate the extent to which the government is having to step in and support the economy," Coghlan said.
"However, our concern is that government support, in whatever form, will have to come to an end eventually and when it does, there will be a seismic shock as companies have to fend for themselves or admit defeat.
CreditorWatch's data showed there was a 15 per cent increase in credit enquiries in the first few weeks of August compared to the July average.
"This is an important indicator that businesses are starting to onboard new customers.
"Whilst we can’t count on green shoots just yet, it's my view that government stimulus packages should be eased off, where possible, to avoid just kicking the can down the road.”
