A strong bounce back in consumer sentiment and sustained property price growth has encouraged the Reserve Bank of Australia to leave the official cash rate on hold for the fourth consecutive month.
At its Board meeting earlier today, the Reserve Bank said it was prudent to leave the cash rate on hold at 2% for another month. Over the last month, the domestic economy has shown signs of improvement, with consumer sentiment and property prices both on the rise. According to the latest data from the Westpac Melbourne Institute of Consumer Sentiment, confidence climbed 7.8% in August to 99.5.
While there were no significant milestones or events to warrant the bounce back in confidence, it is expected that ongoing positive news around house prices buoyed confidence. Over the last quarter, property values across the combined capital cities have continued to climb, soaring 5.5%. Most recently, data from Core Logic found property values climbed 0.3% across the combined capital cities over the month of August.
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