Weaker than expected GDP in the last quarter has raised speculation that the Reserve Bank of Australia might consider reducing interest rates early in 2015.
The RBA held interest rates at 2.5% at its December meeting which meant this rate has been held for a full 12 months – the first time interest rates have been held so long since 2004 when the interest rate was kept at 5.25% for an entire year.
The next meeting of the RBA will be held in February when the Bank will have to weigh up its concerns expressed by Governor Glenn Stevens about Chinese growth rates , a weakening property market and a slightly slower than expected national growth.
The growth in the Australian National Accounts was 0.3% for last quarter was well below expectations of 0.7 % increase.
The concern for the RBA is that the low interest rates don’t seem to be contributing to lifting economic growth so if the GDP remains low along with relatively high unemployment in the new Year, consideration will obviously be given as to whether a further interest rate cut could give the economy some stimulus.
W.A. – boom state for home building in W.A.
Western Australia is continuing to have the strongest residential building market in the country by a healthy margin, ahead of the Northern Territory and New South Wales.
“There is daylight between the three strongest states and the rest of the pack,” said Geordan Murray, Economist with the Housing Industry Association.
In commenting on the bi annual Housing Scorecard report Mr Murray said overall, the Scorecard shows that WA and NSW have caught up to Victoria in terms of historically high levels of new home building activity.
“The Australian Capital Territory took a tumble down the league table sliding from fourth to sixth.
“The recovery in Queensland continues to gather momentum. The analysis shows the improvements can be attributed to a boost in multi-unit home building.
While Queensland still ranks as the second weakest jurisdiction nationally, the margin to the states sitting mid-table has narrowed markedly.”
The HIA Housing Scorecard benchmarks the contemporary performance of fourteen key indicators of activity in residential building against long term averages in each state and territory. This analysis is aggregated in a scoring system to generate a league table ranking the relative strength/weakness of residential building conditions in each jurisdiction.
National Ranking Summary
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