Reserve Bank Update – What It Means For the Housing Market | Ep. 65

In this episode, we discuss this week's Reserve Bank update. While not much changed from a policy perspective – the Official Cash Rate didn't change and the LVRs remained at their current levels – there were some key points made, which indicate future moves. 

The Reserve Bank indicated that a rate cut is likely to occur in February 2020 and that the bank would still like to see increased spending from the government and businesses. For them, increased long term investment is still the most desirable outcome. 

The bank is taking a wait and see approach, they want to see the benefits of their previous rate cuts hit the market before taking further action. 

The general trend for property investment is positive. If LVR restrictions and interest rates continue to ease – as we expect they likely will, then property investors (especially 1st and 2nd time property investors who aren't already heavily indebted) will benefit.