Home News What do consumer prices tell about interest rates in Australia?

What do consumer prices tell about interest rates in Australia?

Font size :

Interest rates are set to remain steady for the rest of the year

The latest consumer price index (CPI) figures released by the Australian Bureau of Statistics seem to suggest that the historically low interest rates will remain steady. 

In a statement, Real Estate Institute of Australia (REIA) president Malcolm Gunning said the All Groups CPI increased by 0.4% in the past quarter, giving an annual increase of 1.9%. 

Meanwhile, the Housing Group increased by 0.7% in the said quarter and 3.3% over the year to March 2018, boosted by electricity and gas/other household fuels segments. 

The rent segment only recorded a 0.2% improvement for the quarter and 0.8% for the year. Gunning explained that the increase in rents slowed down from 2013 when investment in housing started to pick up. 

"The latest CPI figures show that the increases investment in housing has kept growth in rents lower than they have been historically and is clear testament that the current taxation arrangements benefit renters and that any change would see an increase in rents," Gunning said. 

He added: "With the RBA meeting next week, the latest inflation data together with a cooling in the housing market eliminating that source of concern, would suggest that home buyers can be comfortable in the knowledge that interest rates will remain stable for 2018." 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Buyers seek brokers' help to navigate the home loan market Buyers seek brokers' help to navigate the home loan market

There is a surge in borrowers availing themselves of mortgage brokers Read more

Big Four’s customer satisfaction drops due to the Royal Commission Big Four’s customer satisfaction drops due to the Royal Commission The country’s four major banks saw a 3.6% drop in customer satisfaction rating ... Read more

Aussies still troubled by housing costs despite market downturn Aussies still troubled by housing costs despite market downturn The rate of decline is not enough to make homes affordable to most first home buyers ... Read more

The Keys to Performing a Proper Property Inspection The Keys to Performing a Proper Property Inspection A property inspection is key when you're serious about buying a home or property, but how do you know what to look for? ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Oct 23, 2018
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords