Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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Heritage Bank has today cut its discount variable home loan rate to 3.98%.
The special discount variable rate is available for owner-occupier loans of more than $150,000, with a maximum LVR of 90%.
Heritage has also cut the rates on its Home Advantage Variable package product, which bundles together a home loan, credit card and transaction account.
The Home Advantage Variable rate for a loan of $700,000 or more is 3.98%; for a loan from $250,000 to $700,000 it is 4.03% and for a loan of $150,000 to $250,000 it is 4.13%.
The new rates are effective from Thursday, 5 November.  
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jonathanchancellor-7SQnKwU6yx

Heritage Bank cuts discount variable home loan rate to 3.98%

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GUEST OBSERVER
The Reserve Bank of Australia has decided to leave the official cash rate unchanged at a record low of 2%, but said there was scope for a rate cut down the line.
In a statement on the RBA website, governor Glenn Stevens said:
"At today’s meeting the Board judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate at this meeting. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand."
The US Federal Reserve is expected to start increasing its policy rate in the period ahead, the statement said.
Recent attention has focused on the widening gap between the official cash rate and the mortgage rates set by the major lenders.
All of the big four banks have raised their variable home loan rates, after the introduction of tougher new capital requirements designed to act as a buffer in case of financial crisis. The new prudential regulations followed the Murray report into the financial system.
Australia’s estimated seasonally adjusted unemployment rate for September 2015 sits at 6.2%. The RBA said today that there had been “stronger growth in employment and a steady rate of unemployment.”
The RBA said inflation is low and should remain so, forecasting it to be “consistent with the target over the next one to two years, but a little lower than earlier expected.”
We asked experts to respond to the RBA decision.
Timo Henckel, Research Associate, Centre for Applied Macroeconomic Analysis, Australian National University:
This is the right decision. There are signs of weakness in the economy and financial conditions have changed, with the four big banks raising their home loan rates and global financial markets remaining nervous, but there’s not enough there to lower rates further. They are already very low by historical standards.
Inflation is low, that’s true – but a number of the CAMA Shadow Board members are still concerned about easy money and the danger of fuelling asset prices bubbles. I think several Shadow board members would not be unhappy about the banks recently increasing the mortgage rate.
Moreover, this year has witnessed a dramatic fall in energy prices, which would have exerted downward pressure on prices, albeit only temporarily. At this stage it is not clear to what extent lower inflation is supply-side or demand-side driven.
Monetary policy has been expansionary for a long time and this is helping to rebalance the Australian economy, away from the resource sector to manufacturing and the service sector. Whatever slack is left in the system is probably best left to other policy measures, like fiscal and micro-economic policy.
Today’s decision will probably not affect the gap between the official cash rate and the big four rates. When the banks lifted their mortgage rates, they presumably did not do this in anticipation of the RBA changing policy. It would have been interesting had the RBA dropped rates – would the banks have reversed their recent rate increase? Probably not. I cannot judge whether the additional regulatory measures imposed on the banks exactly justify the increase in their home loan rates. No doubt these measures were also a welcome excuse for the banks to squeeze a little but of extra profit margin for their shareholders.
Recent events have confirmed that the RBA is not the only institution assigned with macroprudential objectives. There’s been a vigorous debate, both in policy and academic circles, about whether central banks should be concerned with asset price inflation and excessive credit growth and whether they should use interest rates to prevent asset price price bubbles from becoming too large. It is reassuring to see the Australian Prudential Regulation Authority taking its role seriously and assuming responsibility.
Guay Lim, Professorial Fellow, University of Melbourne
I support and agree with the no-change, wait-and-see decision. I have concerns that further cuts will fuel asset prices with little effect on real spending.
In coming weeks, we will probably better understand what’s happening with fiscal policy and what’s happening with the US rate.
Richard Holden, Professor of Economics, UNSW Australia
The RBA’s announcement following their decision to keep the cash rate on hold at 2% had a fair bit of hedging language including:
"Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand."
So, basically, the RBA will cut rates down the track if it decides to cut rates down the track. Got it!
The big four banks are unlikely to further change mortgage rates in response, having already hiked recently in response to heightened capital requirements, but a cut in the months ahead by the RBA still looks like a definite possibility.
 
Timo Henckel is research associate, Centre for Applied Macroeconomic Analysis, Australian National University and can be contacted <a href="https://theconversation.com/profiles/timo-henckel-990" target="_blank">here</a>.
Guay Lim is professorial fellow, University of Melbourne and can be contacted <a href="https://theconversation.com/profiles/guay-lim-103128" target="_blank">here</a>.
Richard Holden is professor of economics, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">here</a>. All are authors for The Conversation.
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jchancellor-FAypfDUnLy

RBA leaves cash rate unchanged at record low 2%

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Despite some growing conjecture around an imminent rate cut, the board of the Reserve Bank of Australia today decided to keep the official cash rate at 2.00%.
There was some risk that the RBA cut the cash rate today, but financial institutions may then have failed to pass the full cut on to mortgage and business borrowers. 
That would have been perceived as a double hit by mortgage holders who have just experienced a hike in their discounted variable mortgage rate.
It is dangerous timing for the economy to be undergoing a wide-sweeping rationing of credit to investors followed up by an increase in variable mortgage rates. This combined action hits the housing market more heavily than any other industry, yet new home construction has been the key direct and indirect driver of domestic economic activity in recent years. 
Any further interest rate reduction by the RBA – which seems less likely post their November decision – would need to be timed and communicated to ensure it mitigated rather than exacerbated the adverse impact of a tighter financing environment. 
<a href="/images/2015/11/Screen%20Shot%202015-11-03%20at%205.01.55%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/Screen%20Shot%202015-11-03%20at%205.01.55%20PM.png" alt="" width="721" height="376">
 
Harley Dale is chief economist, HIA and can be contacted <a href="https://hia.com.au/en/BusinessInfo/economicInfo/EcoGroup.aspx" target="_blank">here</a>.
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RBA treads most likely path in November: HIA's Harley Dale

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GUEST OBSERVER
The Reserve Bank Board decided to leave the cash rate unchanged at 2%.
Following the print of the September quarter Consumer Price Index markets priced a probability of a rate cut at around 70%. With the clearer guidance from the US Federal Reserve that a Fed rate hike in December was a realistic prospect markets revised down that probability to around 50%.
In the last 24 hours that market probability drifted a little further down to around 40%.
It has always been our view that policy would be unchanged at this meeting. That was because the low inflation print allowed the Bank scope to cut if it so desired but that decision would be predicated on a substantial downward revision in the outlook for economic growth.
We could not see how that downward revision could be justified and therefore were prepared to look through the low CPI. In the event the Bank confirmed its somewhat more confident view around the growth outlook citing “business surveys suggest a gradual improvement in conditions over the past year” and “somewhat stronger growth in employment”; “prospects for an improvement in economic conditions had firmed a little over recent months”.
There was some risk that the very low (0.3%) quarterly print for the CPI in the December quarter may have led the Bank to question the prospect that inflation would remain within the target band of 2-3%. However in the Governor’s statement he confirms his view that inflation will remain within the target over the next one to two years, albeit a little lower than earlier expected.
This theme around inflation is confirmed in the all-important final paragraph where the Bank adopts an explicit, although moderate, easing bias. This bias is expressed with the words “the inflation outlook MAY afford scope for further easing of policy, should that be appropriate to lend support to demand”. This is a weaker easing bias than the terms that had been used around inflation in the past, e.g. “were demand conditions to weaken materially the inflation outlook WOULD provide scope for easier monetary policy” (April 2012). Further evidence that this is a softer bias comes with the first sentence in the closing paragraph where the Governor assesses that “prospects for an improvement in economic conditions had firmed a little over recent months”.
Commentary around housing and credit was also consistent with the “unchanged” decision. Overall conditions in the housing market are still described as “accommodative” and credit growth has increased a little in recent months. Dwelling prices in Melbourne and Sydney and reported to be continuing to rise albeit at a more moderate pace.
There is no change in the assessment of the prospects that the Fed will start increasing its policy rate – just being described as “in the period ahead” and global financial conditions continue to be “very accommodative”.
In previous statements the Governor has singled out weakening prospects in China but China does not rate a mention in this statement although recent falls in our terms of trade are noted.
There is no change in the commentary around the Australian dollar: “the Australian dollar is adjusting to significant declines in key commodity prices”.
Outlook
Over the last week or so market pricing for a full 25bp reduction in the cash rate by December reached almost 100%. Despite the Bank adopting an easing bias we do not consider it likely that the cash rate will be reduced at the December Board meeting. The data flow over the next few weeks will be concentrated on economic activity rather than any further news on inflation. It seems unlikely that, given the Bank’s somewhat more constructive view on the growth outlook such data would trigger a rate cut by December. Of most interest will be the impact on confidence from the increase in mortgage rates by the banks and that will be known with the release of the Westpac Consumer Sentiment survey on November 11.
Other important data events will be the employment report; the quarterly wage price index; housing-related activity and prices; and the capital expenditure survey. The all-important GDP report for the September quarter will not be available until after the December meeting. Furthermore, the December Board meeting will be held only two weeks before the next meeting of the Federal Reserve where a Fed rate hike can be realistically expected.
Markets continue to price 100% probability of a rate cut by February. That is a much more realistic assessment given more time will be available to assess growth momentum and most importantly the December quarter inflation report. It is our view and, apparently, the view of the RBA that the next report will see core inflation move back to the normal “trend” number of around 0.6%. In that event our assessment of the likely growth momentum in the economy will point to rates remaining on hold in February and thereafter.
Any change in that view will be largely driven by an assessment that growth prospects in the economy are likely to lose significant momentum through 2016. 
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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bevans-rYk9SxEa4r

December RBA rate cut seems unlikely: Westpac's Bill Evans

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GUEST OBSERVER
After one of the most anticipated Board meetings for months, the RBA today left rates unchanged, but changed their forward guidance to open up the possibility of a near-term rate cut.
Specifically, the Bank included the comment “members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand”. The fact that the Bank included this statement despite noting that “prospects for an improvement in economic conditions had firmed a little over recent months” highlights to us the importance of the 2-3% target band for inflation for the Bank.
Overall there were quite a few changes in the statement compared with the October one:
Concerns over financial market volatility have eased with the comment that “volatility in financial markets has abated somewhat”, although the Bank noted that “credit costs for some emerging market countries remain higher than a year ago”.
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<div class="column">
 The statement acknowledged the recent low inflation print, but repeated that “inflation is forecast to be consistent with the target over the next one to two years”. The recent out of cycle mortgage rate increases were alluded to, but the RBA noted that “overall [lending] conditions are still quite accommodative”. Importantly, the Bank seems more comfortable with Sydney and Melbourne house price developments, noting the recent moderation in growth.
Overall, today’s statement highlights the importance of inflation to the Bank. That is, despite the prospect of some improvement in activity the Bank seems prepared to ease monetary policy on the back of a lower inflation outlook. This then suggests that a move in December is unlikely. The RBA seems more likely to wait until February when it will have another inflation number which will likely confirm the lower than previously anticipated inflation trajectory. Then the Bank is likely to deliver the first of at least two cuts next year in our view.
While today’s statement suggested a better outlook for activity, we are not so sure. Our own view is that next year growth is likely to remain challenged as the boost from housing starts to fade, and the support to trade from the lower AUD lessens. While the upward trend in consumer confidence coming on the back of Malcolm Turnbull’s appointment as Prime Minister is encouraging, it’s difficult to see that it will be translated into sustained strength in spending in the medium-term given the prospect of ongoing soft wages growth amid high levels of household debt. 
And any rise in the unemployment rate from its current elevated rate would be unpalatable for the RBA. So some further stimulus will be necessary, even if the impact is primary felt via a lower currency.
The easing in housing market activity in Sydney and Melbourne is also an important prerequisite for rate cuts. And today’s comments on housing suggests this key hurdle for further rate cuts is likely to be removed by early next year.
From here on it seems that a rate cut in February is most likely, and the data (both activity and inflation) will have to be sufficiently stronger to persuade the Bank otherwise. 
Felicity Emmett co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/felicity-emmett/5a/3ba/256" target="_blank">here</a>.
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Not today, but February for RBA rate cut: ANZ's Felicity Emmett

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The cash rate has been left at a record low of 2.00% for a sixth month (seven months of rates at 2%).
The Reserve Bank Board has re-instituted the easing bias – meaning that if rates are going to change, it is more likely to be a rate cut.
What does it all mean?
When appearing before the House of Representatives Economics Committee on September 18, the Reserve Bank Governor made the following remarks on official interest rates: "I think we are pretty content where we are right now.” The Governor did note however: “But the question has more been, for us: do we hold or should we go down a little bit more?” Well, the Reserve Bank Board has had another long, hard look at monetary settings and concluded that current rate settings still remain appropriate. But the easing bias is back. Just as the Governor said in September, the question is whether rates need to fall further.
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<div class="column">
 It is important to stress that the ‘easing bias’ is more of an insurance policy rather a definite indication that rates are going to fall in future. The Reserve Bank has actually upgraded its view on the economic outlook: “the Board judged that the prospects for an improvement in economic conditions had firmed a little over recent months”.
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<div class="column">
 The ‘easing bias’ is driven more by the fact that inflation is well contained: “the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand”. In short, it is a very smart decision.
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 Over the last month the main developments were the decisions by major banks to lift mortgage rates to cover the cost of higher capital requirements. Most of these increases will be effective later in November. In terms of economic data, inflation printed at the low end of market expectations. But there is still the prospect of retailers passing through to consumers the higher cost of imported goods.
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 Overseas, the US Federal Reserve left interest rates unchanged but hinted at a rate hike in September. But China cut interest rates and the European Central Bank confirmed that it would do all that it required to lift economic growth in the region and eliminate deflationary risks. In Australia, economic data has been generally positive – as highlighted in the Reserve Bank’s upgrade to the economic outlook. Consumer and business confidence levels have lifted; building approvals and car sales both lifted to record highs on an annual basis; consumer spending and job ads both rose in the latest month.
Perspectives on interest rates
The previous rate cut was in May 2015 (25 basis points), taking the cash rate to a record low of 2.00%. There have been 10 rate cuts since November 2011.
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The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00% to 4.75%. 
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<div class="column"><a href="/images/2015/11/Screen%20Shot%202015-11-03%20at%203.32.43%20PM.png" target="_blank">Click to enlarge</a></div>
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What are the implications of today’s decision? 
CommSec doesn’t expect any change in the cash rate for the foreseeable future. Inflation is under control but we believe it has more potential to rise rather than fall with the lower exchange rate pushing up prices of imported goods. The economy is well supported by record building approvals which are serving to lift many boats across the country.
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 Investors will need to continue researching the best returns on their investments with both interest rates and inflation remaining at historically low levels. In terms of ‘safe-haven’ cash-based investments, online bank accounts may offer better value than term deposits. Certainly blue-chip Australian companies offer attractive fully- franked dividends, especially for investors with longer-term time horizons. 
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<div class="column">Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.</div>
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cjames-5S2v74qSNK

Rates unchanged, easing bias returns: CommSec's Craig James

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The Reserve Bank of Australia has left the official cash rate unchanged at 2%, in line with most analysts’ predictions. 
Unchanged at historic lows, the official cash rate was last dropped at the May meeting.
"Inflation is low and should remain so, with the economy likely to have a degree of spare capacity for some time yet," the board noted.
"Inflation is forecast to be consistent with the target over the next one to two years, but a little lower than earlier expected.
"In such circumstances, monetary policy needs to be accommodative.
"Low interest rates are acting to support borrowing and spending."
Some 80 percent of leading economists and experts in the <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">finder.com.au RBA Survey</a> predicted this outcome.
The next RBA board meeting is on December 1. 
Tim Lawless, the head of research at CoreLogic RP Data said while interest rates are important to the housing market, other factors are also at play in the recent abatement in the rate of capital growth. 
"Investors are now paying close to a 30 basis point premium on their mortgages, rental yields have slipped to new record lows, housing supply is moving through record peaks and affordability challenges are very much apparent in Sydney and to a lesser extent Melbourne," he said.
Angus Raine, executive chairman, Raine &amp; Horne said the RBA governor didn’t strike him as someone who spooks easily, and "the RBA has taken the sensible move to check more local and international data before tweaking the monetary policy levers again.”
The RBA’s decision to leave the cash rate unchanged does very little to buoy the hopes of those dreaming of buying their first home, according to Laing + Simmons managing director Leanne Pilkington.
 
<table id="table_1" class="tableStyle_1 tableWidth75 marginB20" summary="This table records the percentage change in the cash rate beside the new target for the cash rate since 6 January 2008">
<caption>Interest Rate Decisions2008–2015
</caption>
<thead><tr>
<th class="textAlignLeft">Effective Date</th>
<th>Change in cash rate Percentage points
</th>
<th colspan="2">New cash rate target Per cent
</th>
</tr></thead>
<tbody>
<tr>
<td class="textAlignLeft">4 Nov 2015</td>
<td>0.00</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">7 Oct 2015</td>
<td>0.00</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">2 Sep 2015</td>
<td>0.00</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">5 Aug 2015</td>
<td>0.00</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">8 Jul 2015</td>
<td>0.00</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">3 Jun 2015</td>
<td>0.00</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">6 May 2015</td>
<td>-0.25</td>
<td>2.00</td>
</tr>
<tr>
<td class="textAlignLeft">8 Apr 2015</td>
<td>0.00</td>
<td>2.25</td>
</tr>
<tr>
<td class="textAlignLeft">4 Mar 2015</td>
<td>0.00</td>
<td>2.25</td>
</tr>
<tr>
<td class="textAlignLeft">4 Feb 2015</td>
<td>-0.25</td>
<td>2.25</td>
</tr>
<tr>
<td class="textAlignLeft">3 Dec 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">5 Nov 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">8 Oct 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">3 Sep 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">6 Aug 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">2 Jul 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">4 Jun 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">7 May 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">2 Apr 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">5 Mar 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">5 Feb 2014</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">4 Dec 2013</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">6 Nov 2013</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">2 Oct 2013</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">4 Sep 2013</td>
<td>0.00</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">7 Aug 2013</td>
<td>-0.25</td>
<td>2.50</td>
</tr>
<tr>
<td class="textAlignLeft">3 Jul 2013</td>
<td>0.00</td>
<td>2.75</td>
</tr>
<tr>
<td class="textAlignLeft">5 Jun 2013</td>
<td>0.00</td>
<td>2.75</td>
</tr>
<tr>
<td class="textAlignLeft">8 May 2013</td>
<td>-0.25</td>
<td>2.75</td>
</tr>
<tr>
<td class="textAlignLeft">3 Apr 2013</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">6 Mar 2013</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">6 Feb 2013</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">5 Dec 2012</td>
<td>-0.25</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">7 Nov 2012</td>
<td>0.00</td>
<td>3.25</td>
</tr>
<tr>
<td class="textAlignLeft">3 Oct 2012</td>
<td>-0.25</td>
<td>3.25</td>
</tr>
<tr>
<td class="textAlignLeft">5 Sep 2012</td>
<td>0.00</td>
<td>3.50</td>
</tr>
<tr>
<td class="textAlignLeft">8 Aug 2012</td>
<td>0.00</td>
<td>3.50</td>
</tr>
<tr>
<td class="textAlignLeft">4 Jul 2012</td>
<td>0.00</td>
<td>3.50</td>
</tr>
<tr>
<td class="textAlignLeft">6 Jun 2012</td>
<td>-0.25</td>
<td>3.50</td>
</tr>
<tr>
<td class="textAlignLeft">2 May 2012</td>
<td>-0.50</td>
<td>3.75</td>
</tr>
<tr>
<td class="textAlignLeft">4 Apr 2012</td>
<td>0.00</td>
<td>4.25</td>
</tr>
<tr>
<td class="textAlignLeft">7 Mar 2012</td>
<td>0.00</td>
<td>4.25</td>
</tr>
<tr>
<td class="textAlignLeft">8 Feb 2012</td>
<td>0.00</td>
<td>4.25</td>
</tr>
<tr>
<td class="textAlignLeft">7 Dec 2011</td>
<td>-0.25</td>
<td>4.25</td>
</tr>
<tr>
<td class="textAlignLeft">2 Nov 2011</td>
<td>-0.25</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">5 Oct 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">7 Sep 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">3 Aug 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">6 Jul 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">8 Jun 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">4 May 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">6 Apr 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">2 Mar 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">2 Feb 2011</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">8 Dec 2010</td>
<td>0.00</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">3 Nov 2010</td>
<td>+0.25</td>
<td>4.75</td>
</tr>
<tr>
<td class="textAlignLeft">6 Oct 2010</td>
<td>0.00</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">8 Sep 2010</td>
<td>0.00</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">4 Aug 2010</td>
<td>0.00</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">7 Jul 2010</td>
<td>0.00</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">2 Jun 2010</td>
<td>0.00</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">5 May 2010</td>
<td>+0.25</td>
<td>4.50</td>
</tr>
<tr>
<td class="textAlignLeft">7 Apr 2010</td>
<td>+0.25</td>
<td>4.25</td>
</tr>
<tr>
<td class="textAlignLeft">3 Mar 2010</td>
<td>+0.25</td>
<td>4.00</td>
</tr>
<tr>
<td class="textAlignLeft">3 Feb 2010</td>
<td>0.00</td>
<td>3.75</td>
</tr>
<tr>
<td class="textAlignLeft">2 Dec 2009</td>
<td>+0.25</td>
<td align="right">3.75</td>
</tr>
<tr>
<td class="textAlignLeft">4 Nov 2009</td>
<td>+0.25</td>
<td>3.50</td>
</tr>
<tr>
<td class="textAlignLeft">7 Oct 2009</td>
<td>+0.25</td>
<td>3.25</td>
</tr>
<tr>
<td class="textAlignLeft">2 Sep 2009</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">5 Aug 2009</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">8 Jul 2009</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">3 Jun 2009</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">6 May 2009</td>
<td>0.00</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">8 Apr 2009</td>
<td>-0.25</td>
<td>3.00</td>
</tr>
<tr>
<td class="textAlignLeft">4 Mar 2009</td>
<td>0.00</td>
<td>3.25</td>
</tr>
<tr>
<td class="textAlignLeft">4 Feb 2009</td>
<td>-1.00</td>
<td>3.25</td>
</tr>
<tr>
<td class="textAlignLeft">3 Dec 2008</td>
<td>-1.00</td>
<td>4.25</td>
</tr>
<tr>
<td class="textAlignLeft">5 Nov 2008</td>
<td>-0.75</td>
<td>5.25</td>
</tr>
<tr>
<td class="textAlignLeft">8 Oct 2008</td>
<td>-1.00</td>
<td>6.00</td>
</tr>
<tr>
<td class="textAlignLeft">3 Sep 2008</td>
<td>-0.25</td>
<td>7.00</td>
</tr>
<tr>
<td class="textAlignLeft">6 Aug 2008</td>
<td>0.00</td>
<td>7.25</td>
</tr>
<tr>
<td class="textAlignLeft">2 Jul 2008</td>
<td>0.00</td>
<td>7.25</td>
</tr>
<tr>
<td class="textAlignLeft">4 Jun 2008</td>
<td>0.00</td>
<td>7.25</td>
</tr>
<tr>
<td class="textAlignLeft">7 May 2008</td>
<td>0.00</td>
<td>7.25</td>
</tr>
<tr>
<td class="textAlignLeft">2 Apr 2008</td>
<td>0.00</td>
<td>7.25</td>
</tr>
<tr>
<td class="textAlignLeft">5 Mar 2008</td>
<td>+0.25</td>
<td>7.25</td>
</tr>
<tr>
<td>6 Feb 2008</td>
<td>+0.25</td>
<td>7.00 
</td>
</tr>
</tbody>
</table>
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RBA keeps rates at 2% in Melbourne Cup day decision

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<h3 id="mr-title">Statement by Glenn Stevens, Governor: Monetary Policy Decision</h3>
At its meeting today, the Board decided to leave the cash rate unchanged at 2.0 per cent.
The global economy is expanding at a moderate pace, with some further softening in conditions in the Asian region, continuing US growth and a recovery in Europe. Key commodity prices are much lower than a year ago, in part reflecting increased supply, including from Australia. Australia's terms of trade are falling.
The Federal Reserve is expected to start increasing its policy rate over the period ahead, but some other major central banks are continuing to ease monetary policy. Volatility in financial markets has abated somewhat for the moment. While credit costs for some emerging market countries remain higher than a year ago, global financial conditions overall remain very accommodative.
In Australia, the available information suggests that moderate expansion in the economy continues. While GDP growth has been somewhat below longer-term averages for some time, business surveys suggest a gradual improvement in conditions over the past year. This has been accompanied by somewhat stronger growth in employment and a steady rate of unemployment.
Inflation is low and should remain so, with the economy likely to have a degree of spare capacity for some time yet. Inflation is forecast to be consistent with the target over the next one to two years, but a little lower than earlier expected.
In such circumstances, monetary policy needs to be accommodative. Low interest rates are acting to support borrowing and spending. While the recent changes to some lending rates for housing will reduce this support slightly, overall conditions are still quite accommodative. Credit growth has increased a little over recent months, with growth in lending to investors in the housing market easing slightly while that for owner-occupiers appears to be picking up. Dwelling prices continue to rise in Melbourne and Sydney, though the pace of growth has moderated of late. Growth in dwelling prices has remained mostly subdued in other cities. Supervisory measures are helping to contain risks that may arise from the housing market.
In other asset markets, prices for commercial property have been supported by lower long-term interest rates, while equity prices have moved in parallel with developments in global markets. The Australian dollar is adjusting to the significant declines in key commodity prices.
At today's meeting the Board judged that the prospects for an improvement in economic conditions had firmed a little over recent months and that leaving the cash rate unchanged was appropriate at this meeting. Members also observed that the outlook for inflation may afford scope for further easing of policy, should that be appropriate to lend support to demand. The Board will continue to assess the outlook, and hence whether the current stance of policy will most effectively foster sustainable growth and inflation consistent with the target.
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Containing housing risks as supervisory measures assist: November RBA Governor Glenn Stevens' statement

<html><body>
GUEST OBSERVER
The move by the big four banks to raise rates above the Reserve Bank is set to put mortgage holders in a world of hurt with research showing over a third of consumers are unprepared to make higher home loan payments given the interest rate hike. 
Research from Citiwide Homeloans revealed 35 percent of consumers admitted that not only have they not budgeted for an interest rate rise, such an increase would negatively impact their household. 
This would be enough of a concern in itself in terms of consumers potentially defaulting on their home loans, but when allied to other survey findings that average wages are stagnating and a large proportion of consumers are paying scant attention to budgeting or saving, it paints a worrying picture. 
Although rates were at historic lows, consumers should be keeping a tighter rein on their household budgets to ensure that they are not left in a financial pickle with the markets shifting again. 
Our research found that a third of respondents have gone two years or more since their last pay increase, and three quarters reported pay increases fell into the 1-3 percent range, which has minimal impact on a household’s disposable income. 
This is creating an environment where less money is being set aside for savings, with over 40 percent of the survey participants saving less than 5 percent of their total income, and 15 percent admitting that they save nothing at all.
Our findings clearly indicate that not enough attention is being paid to household budgeting, which in wake of rates moving up again could leave a lot of households in considerable financial strife.
With almost 40 percent of respondents admitting that they did not organise their finances based on a set household budget, it is clear that the importance of budgeting and saving at all times is being lost on consumers, or is simply being ignored.
On the flip side though, almost 70 percent of those we questioned said their home loan repayments made up 30 percent or less of their total household income, so that still leaves a fair proportion of household budgets which could be saved or placed in a mortgage offset account to reduce interest, once the other household expenses are taken care of.
It is imperative that people address this now while they still have some wiggle room, rather than waiting until they get into financial difficulties.
Patrick Marion is chief executive officer of <a href="https://citiwide.com.au" target="_blank">Citiwide Homeloans</a> 
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Wages stagnation leaves consumers vulnerable to interest rate rises: Patrick Marion

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<div class="section">
<div class="layoutArea">
<div class="column">
GUEST OBSERVER
The Big 4 banks have no excuse to hold onto any rate cut made today and customers should be prepared to ditch and switch if the banks hold out.
Mozo data shows that the average Big 4 Bank standard variable rate of 5.61% is now 0.52 basis points higher than the market average of 5.09%. 
Last month’s out of cycle rate hikes will already cost big bank home loan customers an extra $372 in interest repayments annually . 
Any moves by the Big 4 to hold onto cuts today will be deeply unpopular, especially in light of the windfall profits announced by NAB and ANZ last week.
Last month's rate hikes sparked a 25% increase in refinancing activity on Mozo.com.au and we'd expect to see the big banks lose more customers if they hold out today.
Since Westpac hiked rates on 14 October, just 9 lenders have followed suit, but in this instance no news is not necessarily good news for borrowers. 
Regardless of which way today’s Reserve Bank decision goes, Mozo is predicting a second wave of home loan rate changes as lenders take the opportunity to make their move.
</div>
</div>
Intense competition among online and non-bank lenders means we could see them pass on the full 25 basis point discount to really increase their market lead.
</div>
<div class="layoutArea">
<div class="column">
Seventeen lenders now have interest rates below 4%, see graph below: 
<a href="/images/2015/11/Screen%20Shot%202015-11-03%20at%2010.58.35%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/Screen%20Shot%202015-11-03%20at%2010.58.35%20AM.png" alt="" width="832" height="521">
 
<a href="/images/2015/11/Screen%20Shot%202015-11-03%20at%2010.59.27%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/11/Screen%20Shot%202015-11-03%20at%2010.59.27%20AM.png" alt="" width="762" height="317">
 
Kirsty Lamont is marketing director of <a href="https://mozo.com.au/" target="_blank">Mozo</a>.
</div>
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