Michael Every Reserve Quotations

Since the Reserve Bank of Australia raised rates in March, the housing market has just been going sideways. Rates are on hold until the third quarter of this year.

For the Reserve Bank, this is likely to significantly dampen any thoughts of rate increases going forward. With higher oil prices and a weakening housing market, employment growth should be much more moderate ahead.

This report backs the Reserve Bank remaining on hold ahead. Weakness in retail and transport is being mitigated by a pickup in mining and construction.

With the import side holding up more strongly than exports for now, the Reserve Bank is unlikely to respond with lower interest rates in the near term.

The residential housing market is well off its peak now. The Reserve Bank remains on hold for now with domestic demand moderating.

The odds of a rate increase on Oct. 27 have shortened. The Reserve Bank is extremely worried over whether the economy will slow rapidly enough ahead to cap obvious inflation pressures. It looks increasingly like it will not.