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  • Low interest rates expected to continue


    Low interest rates expected to continue - reiwa.comThe latest Consumer Price Index (CPI) figures for December 2015, which confirm the Reserve Bank of Australia’s (RBA) assessment that inflationary pressures are well contained, is good news for home owners, according to the Real Estate Institute of Australia (REIA).

    REIA President, Neville Sanders, said the results indicated that home owners could expected a sustained period of low interest rates.

    “In the December quarter, the CPI rose by 0.4 per cent and an annual rate of 1.7 per cent. These figures are well below the RBA’s target zone of two to three per cent and should ease any pressure on the interest rate outlook,” Mr Sanders said.

    The annual changes for the analytical series of trimmed mean and for the weighted median were 2.1 per cent and 1.9 per cent respectively.

    “In the case of the trimmed mean this is the same as for the previous quarter and is the lowest annual increase since the series was introduced in June 2003 and for the weighted mean the lowest since June 2012,” Mr Sanders said.

    The housing group increased by just 0.1 per cent for the December quarter and an annual rate of increase of 2.2 per cent.

    “With inflation under control and a moderating housing market, home buyers can expect a stable outlook,” Mr Sanders said.

    In Western Australia, the CPI increased by 0.5 per cent in the December 2015 quarter and lifted by an annual rate of 1.5 per cent.