Tuesday, June 5, 2012
Interest Rates Down in Australia
The Australian Reserve Bank decreased its interest rate today by 0.25%. BOQ immediately dropped its home lending rate by 0.2%. Will this assist the Brisbane housing market? It will not hurt, but it may not be enough to assist. What drives residential property growth more is population growth and employment growth. In Brisbane, many State Government consultants, contractors and employees are being fired, with the government bankrupt and trying to decrease its workforce by 20%. So this will have a bigger, negative impact than any positive impacts of the interest rate decreases.