RBA Update: October 2023

During their monthly meeting, the RBA decided to maintain the cash rate at 4.10%, keeping it unchanged for the fourth consecutive month following a 0.25bps increase in June 2023. With a series of twelve rate hikes since May 2022, the impact on inflation is becoming apparent, although there was a recent uptick due to global oil and fuel prices. The RBA's confidence in rate stability is backed by the declining inflation trend and some softening in employment data.

Looking ahead, the RBA's next steps depend on the quarterly inflation data set to release in October, which will dictate the possibility and timing of future rate adjustments. This decision is expected to boost buyer confidence in property markets, increasing participation in auctions and open houses. Sellers are also entering the market, yet strong demand continues to keep total listings below average.

Auction volumes are poised for recovery after recent disruptions and a growing number of investors are selling due to the widening gap between rental income and expenses, potentially benefiting first-time homebuyers.
In summary, the outlook for home values remains positive, with robust demand expected to outpace listing growth, albeit at a slightly slower pace than earlier in the year.

For the complete RBA statement, please read here: https://lnkd.in/gu6UD5Zu