<a href="https://www.apartments.com.au/developers/far-east-consortium">Far East Consortium</a> is preparing to commence construction on <a href="https://www.apartments.com.au/new-apartments/640-bourke-street-melbourne-640-bourke-street-melbourne-vic-3000">640 Bourke Street</a> this October, marking the next milestone for the Melbourne CBD development and its higher-end Eliza Collection.

Spanning levels 44 to 68 of the 68-storey <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>-designed tower, the Eliza Collection has been conceived as a lower-density offering within the broader development, with only five apartments on each floor, dedicated lift access and a collection of resident spaces reserved exclusively for Eliza Collection residents.

The Eliza Collection forms part of Far East Consortium's broader move toward larger-format residences at 640 Bourke Street, where the number of apartments was reduced from earlier plans as apartment sizes increased.

[smartcode_project:default project_id=509 project_image_fid=365685]

"What it's meant for 640 Bourke is we've actually reduced the number of apartments. We've increased the overall size of the apartments. We don't have any studios in here, and what that does for a project is it elevates it," Far East Consortium Director of Sales and Marketing Lauren Sheldon said.

Rothelowman Associate Jun Chang said the design process provided an opportunity to create more generous floorplans.

"We were given the opportunity to be more generous. The apartments became bigger and squarer than any other apartments which had been designed in the CBD before that."

[smartcode_project:default project_id=509 project_image_fid=368869]

That thinking carries through to the Eliza Collection, where the residences have been designed around the space and functionality associated with a larger home, but positioned high above the centre of Melbourne.

Kitchens are equipped with Gaggenau appliances, a butler's pantry, temperature-controlled wine cabinet and sculptural pendant lighting, while engineered timber flooring, stone and porcelain finishes and custom cabinetry feature throughout the broader interiors.

Privacy and security are another point of distinction. Eliza Collection residents have dedicated lift access, while 640 Bourke Street will provide concierge services and secure resident parking. Short-stay accommodation, including Airbnb, will not be permitted within the development.

[smartcode_project:default project_id=509 project_image_fid=365689]

Eliza Collection residents will also have exclusive access to selected amenity spaces across levels one and three of the restored Eliza Tinsley building. These include the Salon with grand piano, an art therapy room, private dining rooms and treatment rooms.

They sit within more than 3,000 sqm of amenity planned across 640 Bourke Street, alongside facilities including a pool, gym, whisky lounge and further social and wellness spaces.

The Eliza Tinsley building itself is central to the wider project's identity. Rather than treating the existing Eliza Tinsley façade as a separate element, Rothelowman used it as a starting point for the architecture of the new tower, with the historic building to accommodate the project's gallery and lobby.

"It's a significant asset and wants to be celebrated and experienced by all residents every single time they go in and out of the building," Rothelowman Principal Stuart Marsland said.

[smartcode_project:default project_id=509 project_image_fid=368872]

The tower will rise behind the retained heritage building at 640 Bourke Street, placing residents within walking distance of Southern Cross Station, Flagstaff Gardens, Queen Victoria Market and the Docklands waterfront.

With construction scheduled to begin in October, Far East Consortium has established an onsite display gallery at 640 Bourke Street, including fully built apartments that allow the project's layouts, materials and finishes to be inspected at full scale.

A fully built Eliza Collection apartment is also available to view at the display suite by appointment ahead of the planned October construction commencement.

Eligible purchasers who buy before construction commences can secure the full available off-the-plan stamp duty savings, subject to eligibility and applicable conditions.

[smartcode_project_cta:default project_id=509]

Joel Robinson

Far East Consortium brings Eliza Collection to 640 Bourke Street ahead of October construction start

By the time S&amp;S Projects began planning <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia</a>, the developer already had three Rainbow Bay projects from which to draw.

Flow, Awaken and Esprit had given <a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a> experience developing in the southern Gold Coast enclave, as well as buyer feedback that could be carried into its fourth project, a boutique collection of 38 residences at 271 Boundary Street.

“We have experienced a lot of success in this location and as this was our fourth building we had taken all of the learnings and buyer feedback from previous projects to arrive at a design and apartment mix that we believe had captured all of that experience and remained a true S&amp;S Project in its design and amenity,” the developer said.

That experience has translated into a collection of two, three, four and five-bedroom residences including two penthouses positioned on an elevated corner in Rainbow Bay, where the site opens to multiple coastal view corridors and the area's distinctive north-facing bay.

[smartcode_project:default project_id=140491 project_image_fid=284542]

S&amp;S Projects says the Boundary Street site took years to assemble, having previously comprised six units, a house and a duplex. The developer worked individually with the existing owners to bring the properties together after an earlier attempt to sell the site had been complicated by the number of parties involved.

“We are constantly looking for properties that meet our brand standards of location, views, and sites that are rare with unique aspects that we can develop to maximise the lifestyle of residents who live in our buildings,” S&amp;S Projects said.

The Boundary Street site gave <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a> a different set of conditions to work with.&nbsp;

“Our design brief was to design a building that took advantage of its unique elevated corner siting offering a range of spectacular view corridor opportunities,” Cottee Parker said.

“The design had to reinforce the strong brand pillars of S&amp;S which are quality, luxury and superior resident amenity.”

[smartcode_project:default project_id=140491 project_image_fid=284543]

Cottee Parker responded with a sculptural floorplate and strong horizontal banding, with continuous balconies and landscaped planters wrapping the building. Operable screens along the balcony edges allow residents to manage light and shade while creating an additional layer of pattern across the facade.

The tower rises above a heavily landscaped podium incorporating the entry lobby and recreational level, while the broader architectural expression takes cues from Rainbow Bay's coastal environment through its organic forms and light material palette.

Cottee Parker says the design has also been developed to complement S&amp;S Projects’ three previous Rainbow Bay developments while retaining its own architectural identity.

Inside, the residences continue that coastal response through two interior schemes centred on warm timbers and neutral tones, alongside patterned natural stone and fluted detailing.

Floor-to-ceiling sliding glass doors connect open-plan living areas to wraparound balconies, while natural stone is used across benchtops, splashbacks and bathroom walls. Specifications also include light-washed timber flooring, gas fireplaces, integrated bar and wine fridges, freestanding stone baths and 100 per cent wool carpet.

[smartcode_project:default project_id=140491 project_image_fid=284559]

Cottee Parker Director Sandra Brown said the intention was to create an architectural response closely connected to its surroundings.

“Imagine architecture that breathes with the rhythm of nature, where every curve and line flows seamlessly – creating spaces that dance with the elements, where sunlight kisses every surface and the gentle sea breeze fills every space,” Brown said.

The lessons S&amp;S Projects carried into Radia also extend to its resident amenity, with a substantial collection of shared facilities planned for just 38 residences.

A dedicated Residents Club will include a lap pool and spa, gymnasium, ice bath, sauna, steam room and hot rocks sauna. A residents' lounge, private dining room, outdoor dining and barbecue area and business centre are also planned, along with storage and dedicated surfboard and beach lockers.

S&amp;S Projects Founding Director Paul Gedoun said the facilities were also designed around the project's Rainbow Bay setting.

“Each amenity is designed to capitalise on the lifestyle of Rainbow Bay, ensuring residents can enjoy the relaxed coastal experience the enclave is famous for,” Gedoun said.

[smartcode_project:default project_id=140491 project_image_fid=284555]

<a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a> says purchasers to date have predominantly included local downsizers, interstate lifestyle investors and families, alongside a strong contingent of repeat S&amp;S purchasers.&nbsp;

According to the project sales team, feedback has centred on the natural stone and joinery, generous floorplans, natural light and the ability for residences to capture views in multiple directions. The completed Flow, Awaken and Esprit developments have also provided prospective purchasers with an existing reference point for S&amp;S Projects' delivery in Rainbow Bay.

There has also been interest from high-profile surfers and people connected to the surf community, with the elevated building providing outlooks towards several of the area's recognised surf breaks.

Radia continues S&amp;S Projects' concentration of development in a tightly held part of the southern Gold Coast, close to Rainbow Bay Beach, Snapper Rocks, Duranbah Beach, Greenmount Beach and the Tweed River. The neighbourhood also includes a growing collection of hospitality venues, while Coolangatta Airport provides connections beyond the southern Gold Coast.

Hutchinson Builders is now delivering Radia, continuing the project from early works privately funded by S&amp;S Projects. The $250 million development is expected to reach completion in the third quarter of 2027.

“With our history in Rainbow Bay, we have been fortunate to be heavily involved in how the development landscape has unfolded and this project slides into the property landscape comfortably and will feel like it was always there,” the developer said.

[smartcode_project_cta:default project_id=140491]

How three Rainbow Bay projects shaped S&S Projects' fourth, Radia

Nearly 40 years after <a href="https://www.apartments.com.au/developers/sheida-group">The Sheida Group</a> began working on the northern Gold Coast, the family-owned developer is continuing its involvement in Hope Island with Marina Point Apartments, where apartment scale has been a central part of the development.

Across the 235-apartment waterfront community, the developer has prioritised larger floorplans, substantial open space and marina access, responding to a purchaser base that has predominantly comprised local owner-occupiers and downsizers moving from larger homes.

"Having already delivered Anchorage nearby, we also understood this particular market and how people live here," developer Rick Sheida said.

"<a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Marina Point&nbsp;Apartments</a> gave us the opportunity to build on those lessons and create the next evolution of our work in Hope Island."

[smartcode_project:default project_id=136992 project_image_fid=293151]

The Sheida Group acquired the Marina Point land around 2018. Its appeal, Sheida says, went beyond having a waterfront address.

"What attracted us was not simply that the site was waterfront, but the way it meets the water," he said.

"It sits at the junction of broad waterways, creating long sightlines, changing views and a sense of movement throughout the day. Its shape also allowed us to orient the buildings outward, improve privacy between residences and make better use of natural light and breezes."

The buildings have subsequently been positioned around the perimeter of the site, allowing most apartments to take in water views while others look across the resort amenity or hinterland. Once all four buildings are complete, approximately one hectare of the site is expected to remain as open space.

The waterfront also provides the potential for up to 50 marina berths, with berths ranging from 15 to 24 metres and options designed to accommodate wider vessels including catamarans. Access from the marina to the Gold Coast Seaway is bridge-free.

[smartcode_project:default project_id=136992 project_image_fid=293149]

The developer says purchasers to date have predominantly been owner-occupiers and downsizers from <a href="https://www.apartments.com.au/new-apartments/marina-point-apartments-hope-island-66-view-line-terrace-hope-island-qld-4212">Hope Island</a> and elsewhere on the Gold Coast, generally aged between 45 and 70. Many have sold larger family homes or properties requiring significant upkeep.

That purchaser profile informed a design brief centred on retaining the space and functionality of a larger home within an apartment format.

"Many of our buyers are coming from large, well-appointed homes in Sanctuary Cove and the surrounding area," the project team said.

"They are accustomed to generous spaces and thoughtful design, so it was important that the apartments delivered the same sense of comfort and functionality.

"Every room needed to feel well proportioned, every space needed a clear purpose and nothing could feel compromised."

Residences range from 139 sqm through to 319 sqm penthouses, with two car spaces provided to apartments and three to penthouses. Minimum 2.7-metre ceilings, floor-to-ceiling glazing, entertainer's kitchens with butler's pantries, substantial storage and balconies ranging from 18 sqm to 37 sqm further reflect the emphasis on space.

One purchaser from Sanctuary Cove has taken the concept further, combining two of Marina Point's largest apartments to create a 552 sqm residence with raked ceilings reaching up to 4.5 metres.

[smartcode_project:default project_id=136992 project_image_fid=293155]

With Building 1 now complete, the developer is also seeing its original design assumptions tested against purchaser feedback.

Three completed display residences allow prospective purchasers to compare apartment sizes, layouts, finishes and outlooks in person. The sales team says one of the most consistent responses has been to the scale of the apartments, with visitors describing them as feeling more like homes than conventional apartments.

The first stage of resident amenity is also operational, including a 25-metre heated lap pool, Technogym-equipped gym, infrared sauna, golf simulator and yoga room. Future facilities are set to include a resort-style pool and spa, waterfront barbecue area and a residents' lounge with a library, fireplace, pool table, kitchen and bar.

Rather than treating the four buildings independently, the design brief called for a complete waterfront neighbourhood, balancing private residences with landscaping, open space, marina access and shared amenity.

[smartcode_project:default project_id=136992 project_image_fid=293152]

For Sheida, Marina Point Apartments is ultimately an extension of the developer's longer-term involvement in Hope Island and its view of how the suburb is evolving.

"We were equally interested in the long-term future of Hope Island," he said.

"Its position between Brisbane and the central Gold Coast gives residents access to both, while improving transport connections are making the northern Gold Coast increasingly attractive as a permanent place to live."

Hope Island Marketplace is 1.3 kilometres from Marina Point, while Sanctuary Cove and Paradise Point are within six kilometres. Links Hope Island, The Pines and The Palms golf courses are also nearby, and the new Hope Island train station is under construction around five kilometres from the development.

Building 2 is under construction, with completion scheduled for 2027.

[smartcode_project_cta:default project_id=136992]

Marina Point Apartments continues The Sheida Group's 40-year Hope Island story

Sydney-based fund manager and developer EG is seeking to turn part of the former Roche pharmaceutical campus in Cromer into a 130-home residential community, introducing a mix of low-rise apartments, townhouses and duplexes to the tightly held Northern Beaches market.

The SJB-designed masterplan has been prepared for the 3.2-hectare site at <a href="https://www.apartments.com.au/new-apartments/100-south-creek-road-cromer-nsw-2099">100 South Creek Road</a>, part of the former Roche landholding that EG acquired for $55 million in 2017 through its Yield Plus Infrastructure Fund No. 2.

EG is proposing what SJB describes as a new "urban village" set within the site's significant existing tree canopy.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="482c9a58-49f1-4c53-a12e-aaa02336229f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.20.57%E2%80%AFAM.png?VersionId=hZP8_XfPnfNq500dbcjlpVwYU1ebhF9_" />

Around three hectares of the site is considered developable, with the balance incorporating a riparian corridor that would be rehabilitated and revegetated as part of the proposal.

The indicative masterplan comprises approximately 72 apartments in low-rise residential buildings and another 58 townhouses and duplexes.

The apartment component would include around five one-bedroom, 37 two-bedroom and 30 three-bedroom residences, while the townhouse and duplex component would be spread across several different housing typologies. The overall scheme would deliver around 19,500 sqm of gross floor area at an FSR of 0.6:1.

Parking for the apartment component is currently estimated at around 112 resident spaces and 14 visitor spaces, while the townhouse and duplex component would have 116 resident and 12 visitor spaces.

A significant part of the masterplan revolves around retaining the established landscape character of the former Roche campus.

SJB's plans show heavily treed setbacks along both Campbell Avenue and South Creek Road, a centrally located collection of significant native and exotic trees retained as communal open space, and the regeneration of the northern bushland area.

The existing creek corridor along the site's western edge would also be rehabilitated and revegetated, creating additional separation between the new homes and the neighbouring Northern Beaches Business Park.

A heritage-listed cottage and its garden setting would be retained and restored, with SJB flagging its potential adaptive reuse as communal space.

The proposal also includes new communal recreation areas, pedestrian connections to Campbell Avenue and South Creek Road, and a contribution toward improvements to the adjoining Michele Reserve.

Vehicular access would be restricted to South Creek Road, with no vehicle entry proposed from Campbell Avenue. The main internal road would largely follow the site's existing driveway to minimise the impact on established trees.

SJB said residential redevelopment presented an opportunity to retain the majority of the site's heritage-listed mature trees while delivering a broader range of housing types than typically seen across the Northern Beaches.

"The site being 3.27 hectares in area represents one of the largest vacant sites in common ownership in the Cromer and Dee Why area capable of residential renewal," SJB noted in the masterplan.

The architect said the proposal would particularly target housing diversity through townhouses and other "missing middle" typologies suitable for singles, young families, downsizers and retirees.

<img alt="Cromer" data-entity-type="file" data-entity-uuid="e3f5d841-8491-427e-8ada-c70d3d03d6bc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-24%20at%2011.21.02%E2%80%AFAM.png?VersionId=xTV7r.q8lrTzC9vKzMS9zMbjm9wKwhgm" />

The site emerged following the subdivision of the former Roche campus into eastern and western parcels.

EG has already transformed the western portion into the Northern Beaches Business Park, which incorporates heritage-listed office space, modern warehouses and indoor recreation facilities.

The proposed residential community, referred to as Cromer East in SJB's plans, adjoins established housing to the north, east and south-east, while the business park sits beyond the creek corridor to the west.

It is also within 250 metres of Pittwater House School and Northern Beaches Secondary College, while bus stops within a three-to-five-minute walk provide connections to Dee Why, Brookvale and express services to the Sydney CBD. Cromer Park and the South Creek open space corridor are also nearby.

EG acquired the broader 7.5-hectare former Roche campus in 2017 for $55 million through its Yield Plus Infrastructure Fund No. 2. The campus at the time comprised more than 25,000 sqm of industrial and office buildings set within landscaped grounds.

The current residential site represents the eastern portion of that original holding.

EG's investment strategy for the fund has centred on acquiring income-producing real estate with longer-term rezoning and repositioning potential, particularly assets benefiting from infrastructure and changing land-use patterns.

EG also has an established residential track record across Sydney, including Bosco in Five Dock, Tempo in Drummoyne, The Flour Mill in Summer Hill and Pindari in Randwick.

The developer says it has delivered more than 1,000 homes to date, with a further 3,000-plus residences across its development pipeline.

First look: EG plans 130 apartments on former Roche pharmaceutical campus in Cromer

<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

SP Setia plans three-tower finale for Carlton’s former CUB precinct

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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The RBA considered these four charts to help in its determination of keeping the cash rate on hold at 1.5 percent earlier this week.
Household debt is at its peak, while interest being paid on households has begun a sharp decline.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/debt1.jpg" target="_blank">to enlarge.</a>
 
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/8/debt1.jpg" alt="" style="font-size: 12.16px;">
 
Housing loan approvals are also near their peak, with the gap between owner occupiers and investors widening.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/approvals1.jpg" target="_blank">to enlarge.</a>
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/8/approvals1.jpg" alt="">
Household net wealth is peaking, which will have made the RBA contemplate a rate raise.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/wealth2.jpg" target="_blank">to enlarge.</a>
 
 
 
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/8/wealth2.jpg" alt="">
 
Housing prices are set to end the year in a downturn.
Click here <a href="https://www.propertyobserver.com.au/images/2017/12/8/prices1.jpg" target="_blank">to enlarge.</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/8/prices1.jpg" alt="">
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jrobinson-rf4aSBido9

Four housing charts that helped the RBA decide to hold rates

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Ballarat estate agency Gull and Company has been reprimanded and penalised $5,000 by the Victorian Civil and Administrative Tribunal (VCAT) for operating without a licence during 2015. 
The company operated without a licence between 27 August and 19 October of that year, during which time it carried out estate agent functions. 
In June and August of 2015, the Business Licencing Authority (BLA) emailed Gull and Company, reminding it to lodge its annual statement and pay the required fee, which the company did not do within the required time. As a result, Gull and Company’s licence was automatically cancelled. 
The company initially claimed that it had not received the second email, and was therefore not given sufficient notice of its annual statement and payment obligations, as required under the Estate Agents Act 1980. 
Prior to the VCAT hearing, Gull and Company arranged for a forensic examination of an old computer server, which showed that the company had received the second email.
As well as the penalty and reprimand, Gull and Company must also: 
<ul>
<li>advise vendors that it acted for while unlicensed that, among other things, it was not a licensed estate agent at the time </li>
<li>establish a system to ensure that it lodges its annual statements and pays the required fees on time. </li>
</ul>
Gull and Company applied to the BLA for a new licence, which was granted on 20 October 2015.  
The $5,000 penalty must be paid into the Victorian Property Fund. 
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j.ballantyne1990-6AQqhLzZaK

Ballarat estate agency cops fine after licensing mixup

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The RBA left interest rates on hold again for the 16th month in a row following its November Board meeting and its post meeting statement provided no urgency to start raising rates.
As has been the case for some time now the RBA expects growth to pick up to around 3% or just above over the next few years – and is getting more confident that a pick up in non-mining investment and increased infrastructure spending will help on this front – and it sees stronger growth along with continuing labour market strength driving an eventual pick up in wages growth and inflation.
However, for now it remains in wait and see mode thanks to uncertainty hanging over the outlook for consumer spending and wages growth and inflation remaining low. At the same the RBA continues to warn that a stronger $A would likely result in slower growth and inflation than forecast and worries about the overheated Sydney and Melbourne property markets have receded with national home prices flat over the last six months. 
While some express surprise that the RBA isn’t following the US Federal Reserve in its interest rate tightening cycle, it’s worth noting that the RBA sets rates on the basis of Australian conditions so there is no automatic linkage from the Fed to RBA on rates.
In fact, ever since the GFC we have diverged – raising rates in 2009-10 when the Fed held rates at zero and cutting rates last year when the Fed had started to hike. While a tightening Fed in the year ahead and an on hold RBA are likely to contribute to a fall in the value of the Australian dollar, given weak inflationary pressures and some uncertainty around growth this would be a desirable development and so wouldn’t prompt an RBA move unless the $A crashed causing a surge in inflation (which looks unlikely).
Given all this, we remain of the view that the RBA won’t start raising interest rates until late next year at the earliest.
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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soliver-smf6LQXgW9

RBA have no urgency to start raising rates

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At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
Conditions in the global economy have improved over 2017. Labour markets have tightened and further above-trend growth is expected in a number of advanced economies, although uncertainties remain. Growth in the Chinese economy continues to be supported by increased spending on infrastructure and property construction, although financial conditions have tightened somewhat as the authorities address the medium-term risks from high debt levels. Australia's terms of trade are expected to decline in the period ahead but remain at relatively high levels.
Wage growth remains low in most countries, as does core inflation. In a number of economies there has been some withdrawal of monetary stimulus, although financial conditions remain quite expansionary. Equity markets have been strong, credit spreads have narrowed over the course of the year and volatility in financial markets is low. Long-term bond yields remain low, notwithstanding the improvement in the global economy.
Recent data suggest that the Australian economy grew at around its trend rate over the year to the September quarter. The central forecast is for GDP growth to average around 3 per cent over the next few years. Business conditions are positive and capacity utilisation has increased. The outlook for non-mining business investment has improved further, with the forward-looking indicators being more positive than they have been for some time. Increased public infrastructure investment is also supporting the economy. One continuing source of uncertainty is the outlook for household consumption. Household incomes are growing slowly and debt levels are high.
Employment growth has been strong over 2017 and the unemployment rate has declined. Employment has been rising in all states and has been accompanied by a rise in labour force participation. The various forward-looking indicators continue to point to solid growth in employment over the period ahead. There are reports that some employers are finding it more difficult to hire workers with the necessary skills. However, wage growth remains low. This is likely to continue for a while yet, although the stronger conditions in the labour market should see some lift in wage growth over time.
Inflation remains low, with both CPI and underlying inflation running a little below 2 per cent. The Bank's central forecast remains for inflation to pick up gradually as the economy strengthens.
The Australian dollar remains within the range that it has been in over the past two years. An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.
Growth in housing debt has been outpacing the slow growth in household income for some time. To address the medium-term risks associated with high and rising household indebtedness, APRA has introduced a number of supervisory measures. Credit standards have been tightened in a way that has reduced the risk profile of borrowers. Nationwide measures of housing prices are little changed over the past six months, with conditions having eased in Sydney. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities.
The low level of interest rates is continuing to support the Australian economy. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
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Rent increases remain low: RBA governor's December 2017 statement

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The RBA cash rate decision came out at 2.30pm today - and rates were held again.
The banks of course continue to make their own moves, including cutting the rate for IO loans.
The central bank's last move saw it go to 1.5 percent at the August 2016 meeting, so rates have been held steady for 16 meetings.
It is not the longest run of steady rates as there were 16 meetings (inclusive) between their August 2013 meeting and December 2014 where they held at 2.5 percent. There was another run of 16 meetings between July 2002 and October 2003 where rates were held at 4.75 percent.
The RBA will next meet in February 2018.
Almost all economists predicted a hold at the last meeting of the year.
Most don't foresee any change throughout 2018.
ANZ Research has suggested rates wont hike until 2019.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/7/ANZ.jpg" alt="">
 
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RBA holds again for full year: RBA December rate decision

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Interest-only loans fell sharply in the quarter ended September due to the Australian Prudential Regulation Authority’s steps to limit the high percentage of these risky loans by banks. 
APRA’s September Quarterly ADI Property Exposures data shows interest-only loans have fallen to 16.91 per cent of new lending, down from 30.50 per cent last quarter, a drop of 44.84 per cent and a historic low in terms of percentage share.
The big four banks have reduced the share of new interest-only loans to 16.69 per cent, down from 31.47 per cent in the June quarter, a drop of 48.65 per cent, RateCity said in a media release, citing APRA data.
RateCity.com.au money editor Sally Tindall said the results were an emphatic win for APRA which, in March, had demanded banks limit interest-only terms to 30 per cent of all new lending.
“Today’s data is a slam dunk for APRA,” she said.
“This has been a colossal turnaround in the way banks view interest-only terms.”
<a href="https://www.propertyobserver.com.au/images/2017/12/5/RateCity1.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/12/5/RateCity1.png" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/12/5/RateCity2.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/12/5/RateCity2.png" alt="">
In June 2015, 45.65 per cent of all new loans approved by banks were interest-only. Today this has been reduced to under 17 per cent, she added.
“The RBA will also be relieved to see people committing to paying down their debt. Our household debt to income ratio is at a record high.
“This move away from interest-only lending should help bring this ratio down to more realistic levels.
“While new lending has been slashed, the banks still have a way to go to budge existing mortgage holders,” she said.
The latest APRA figures show that 35.35 per cent of all loans are still interest-only, a modest six per cent drop over the quarter.
RateCity data shows that on average banks are charging between 30 and 35 basis points more for interest-only lending, however this hasn’t promoted the majority of existing borrowers to start paying down their debt.
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jonathanchancellor-7SQnKwU6yx

Interest-only lending plummets for new loans: RateCity

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Westpac is cutting fixed interest rates on new interest-only loans by up to 0.4 percentage points.
Interest-only loans for owner-occupiers are being cut by 0.15 percentage points for two and three-year terms, to 4.09% and 4.19%, respectively.
Westpac said the lower rates would be available only to new customers, in a sign the lender is looking to grab market share from rivals.
It comes after several SMALLER banks have cut their fixed interest lending rates in recent weeks, with the Mozo comparison website, signalling lenders including Bankwest, CUA, Heritage Bank, ME Bank and Teachers Mutual Bank all reduced some fixed interest rates over the past month.
Westpac-owned brands are joining smaller rivals by cutting fixed rates across two and three-year terms, for both owner-occupiers and property investors.
Westpac-owned St George, Bank of Melbourne and BankSA have cut rates on two-year fixed loans for investors paying only interest by 0.4 percentage points, to 4.09%.
Fairfax Media recently noted fixed interest rates are set off bond rates, and tend to move in response to expectations about the future direction of the cash rate. 
A note to mortgage brokers said the deepest cuts would be for interest-only loans, where the Australian Prudential Regulation Authority had forced banks to clamp down earlier this year because of "heightened risks" in the housing market.
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Westpac joins smaller banks in cutting rates for IO property loans

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A HashChing survey has found that 91 percent of broker believe interest rates will remain on hold in December.
Just five percent are expecting a drop.
A positive 83 percent of brokers surveyed suggested they don't believe the real estate bubble will burst in the next 12 months.
Nearly 65 percent of brokers said they believe most Australians are 100 percent truthful on their home loan applications, while 70 percent say that more than half of Australian homeowners request a lower interest rate when applying for a home loan.
One of the most standout figures in the survey was that over 63 percent of brokers don't think recent moves to moderate lending to investors and interest-only buyers has helped make property more accessible for first home buyers in Sydney and Melbourne.
HashChing coo Siobhan Hayden said that this month's survey results indicate that brokers are reasonably confident in the stability of the Australian housing market, and will be for the foreseeable future.
"This is despite the majority thinking that recent moves to make property more accessible for first home buyers are failing.
<div>
<div>"Interestingly, the majority of Australian borrowers are asking for a lower interest rate when applying for home loans.</div>
<div> </div>
<div>"This indicates that despite the industry's recent digital disruption, brokers continue to play a pivotal role when it comes to negotiating adequate and fair deals for homeowners," she said. 
</div>
</div>
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RBA to hold in December: HashChing survey

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This is the third year running that this topic has been included in the year’s Big Issues.
In 2015 we said: “the answer will be revealed over 2016.” In 2016 we were more circumspect saying “we believe that discussion will continue to swirl about what sort of landing the housing market will experience.”
And indeed the issue has continued to be debated. But arguably the longer that the issue is debated, the more likely that Australia’s buoyant housing markets, notably Sydney and Melbourne, will experience a soft landing.'
Certainly there are many parts of the country that have far different experiences. Perth and Darwin housing markets are going through corrections after mining and energy construction booms. Adelaide and Brisbane have generally seen steady conditions. However the significant apartment building in Brisbane has led to a very soft rental market. Interestingly though, demand for some accommodation like townhouses is strong and not being met by supply, supporting prices.
The Hobart housing market is firm, benefitting from an overflow of housing demand from Sydney and Melbourne. The issue is one of under-supply rather than over-supply. And the Canberra housing market remains healthy, due in part to the control of land supply by the ACT Government.
The Sydney housing market has certainly softened with a combination of cooling demand and the gradual completion of more homes, especially apartments. The auction clearance rate has eased to around 61 per cent, down from around 80 per cent a year ago. But population growth remains solid in Sydney and rental vacancy rates are still low. In Melbourne, the market remains solid, again supported by population growth.
A key factor that points to the potential for a “soft” landing rather than “hard” landing in markets such as Sydney and Melbourne has been the policy of lenders. Reflecting on the experience of housing over-supply in the US and Europe during the Global Financial Crisis, Australian lenders adopted a new policy. Before lenders would provide finance to developers they sought that around 100 per cent of properties be sold “off the plan” by developers. There is still scope for ‘indigestion’ in some markets with a lot of building going on, but less scope for a broader “hard landing”.
Craig James cited a number of big issues for 2018:
- US President Donald Trump 
- How long will inflation stay low?
- The disconnect between jobs and wages
- Housing: Hard landing or soft landing?
- Infrastructure
- The economic benefit of lower taxes
- Consumer Debt
- The 'slowdown' of the Chinese economy
 
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
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cjames-5S2v74qSNK

Housing hard landing or soft landing? CommSec Research - The Big Issues of 2018

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Despite the ups and downs in the value of bitcoin, Australia’s top experts and economists don’t think the cryptocurrency is a “foolish” investment, according to finder.com.au.
Results from the December <a href="https://www.finder.com.au/bank-interest-rates" target="_blank">finder.com.au</a> <a href="https://www.finder.com.au/rba-cash-rate" target="_blank">RBA Survey</a>, the largest of its kind in Australia, show all 33 respondents are forecasting a cash rate hold this Christmas.
There is widespread agreement among the panel (87%) that when the cash rate next moves, it will be in a positive direction.
However, opinions are divided about when the next move will happen, with a significant number of respondents predicting a long wait until the rate is adjusted.
Graham Cooke, insights manager at <a href="https://www.finder.com.au" target="_blank">finder.com.au</a>, says it’s probable there won’t be movement until the latter half of 2018.
“Even if it does nudge next year, it’s likely to be in the third or fourth quarter,” he says.
One third of the panellists aren’t expecting any cash rate movement until 2019.
Meanwhile, the upcoming Royal Commission into the banking industry may shake things up in Australia. Nerida Conisbee from REA group believes consumer confidence is the cornerstone of a well-run economy.
“It’s too early to tell what the impact of the Royal Commission will be. For Australians who feel the banks have at times been operating illegally or unethically, the Royal Commission will hopefully provide better ways for them to resolve their grievances,” she says.
Mr Cooke warns Australians not to get caught up in the Royal Commission.
"Nobody knows what the next year will have in store, and what skeletons the banks may have in their closets. However, the fact that the banks have asked for this inquiry may indicate a belief that their closets are fairly empty. Only time will tell," he says.
Meanwhile, with the value of bitcoin soaring to over US$10,000 this year and then falling sharply last week, experts weighed in on cryptocurrency as an investment.
 Most respondents (11, 79%) don’t consider bitcoin a “foolish” investment.  <a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts" target="_blank">L</a><a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts" target="_blank">ast month’s finder.com.au </a><a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts">RBA</a><a href="https://www.finder.com.au/press-release-nov-2017-blockchain-is-the-real-power-behind-bitcoin-say-experts" target="_blank"> survey</a> showed the real impact from the bitcoin revolution could be the blockchain system behind it. "The blockchain essentially works as an unhackable record of transactions and interactions. It therefore has a wide range of applications outside of bitcoin. "Blockchains are being developed today to keep track of property ownership records and to allow expatriates and immigrants to send funds home to their families faster and cheaper than ever before – this could have far wider implications than the cryptocurrency itself," Mr Cooke says. Here’s what our experts had to say: Jordan Eliseo, ABC Bullion (Hold): "The RBA will be happy to sit tight as we approach Christmas, and monitor incoming data. With housing starting to roll over, retailers facing a tough holiday period,  and a stubbornly high Australian dollar, we remain confident that the next move will be a cut, but this will take time to play out. " Shane Oliver, AMP (Hold): "Strong business conditions, strong employment and the RBA's own expectations for stronger growth point to an eventual rate hike but low inflation, record low wages growth, the slowing housing cycle, uncertainty around consumer spending and the still too high $A argue for flat or even lower rates. So the outcome is likely to be on hold for the 16th month in a row." Alison Booth, ANU (Hold): "The fundamentals don't justify any change for the moment." John Hewson, ANU (Hold): "Insufficient data." Darryl Gobbett, Baillieu Holst Ltd (Hold): "RBA comments suggest even more uncertainty about the inflation forecasts, when falling wages growth will stabilise and the very high and rising levels of household debt, which might justify ending the very low  cash rate, but this being offset by the concerns at what a rise may do to the $A and household consumption. So hold off." Paul Dales, Capital Economics (Hold): "The RBA doesn't want to cut interest rates for fear of inducing households to take on more debt, but equally economic growth and inflation aren't strong enough to prompt it to raise interest rates." Saul Eslake, Corinna Economic Advisors (Hold): "RBA has again made it clear it has no appetite for cutting rates further, but nor will it start raising them until there is a more solid basis than presently exists for confidence that inflation will return to within the target band, that economic growth will return to trend, and that spare capacity in the labour market is being steadily absorbed." Scott Morgan, Greater Bank (Hold): "Data does not support a move at this stage." Mark Brimble, Griffith University (Hold): "While the economy could do with support and the lead into the holiday season could be a great time to generate consumer confidence, the RBA is likely to not move due to ongoing concerns in housing and credit markets." Shane Garrett, Housing Industry Association (Hold): "Australia needs interest rates to stay low at the moment. General inflationary pressures are well under control - but several components of demand are below par and need a supportive interest rate backdrop." Paul Bloxham, HSBC (Hold): "Inflation remains below target, but growth is lifting." Alex Joiner, IFM Investors (Hold): "No economic justification for a rate rise. As house price growth decelerates pressure on the RBA to raise rates dissipates. Its outlook for inflation does not warrant any move or indeed even any more of a hawkish stance." Robert Montgomery, Infrastructure Partnerships Australia (Hold): "There has been little change in economic indicators, so the cash rate will continue to remain on hold." Michael Witts, ING (Hold): "The economy continues to perform in line with the RBA's expectations, so there is no need for RBA action at this time." Leanne Pilkington, Laing+Simmons (Hold): “The OECD has recently signalled that the winds of change in the Australian economy may be preparing to blow, and that a rate rise may come sooner than previously thought. Even so, this would be 12 months away. In our view, with the heat gone from the housing market, and with wages, unemployment and inflation steady, there’s no impetus for the RBA to tinker with interest rates in the near term." Nicholas Gruen, Lateral Economics (Hold): "They've signalled they will." Mathew Tiller, LJ Hooker (Hold): "The soft outlook for GDP, inflation, and wages growth, combined with the moderation in property price growth, should keep the cash rate on hold over the short term." Stephen Koukoulas, Market Economics (Hold): "The RBA continues to ignore the signals that point to the need for an interest rate cut - low wages growth and inflation, weak consumer spending and moderate growth." Michael Yardney, Metropole (Hold): "The official RBA interest rate is likely to remain at 1.5% throughout 2018.  Australia's economy is still operating below its potential with economic growth not strong enough to justify an interest rate increase.   The positive signs of jobs creation, falling unemployment and rises in full-time employment are being offset by slow wages growth, sluggish retail sales and a benign inflationary environment.  Fortunately, the RBA will be pleased our property markets are cooling and will not feel the need to use rising rates to slow the market." Mark Crosby, Monash University (Hold): "The RBA has signalled no increases in rates for the foreseeable future. Whether or not this is wise doesn't matter, the RBA will sit on their hands for the next 6 months at least." Jessica Darnbrough, Mortgage Choice (Hold): "Anaemic inflation, combined with a drop in consumer sentiment, and non-existent property price growth over the last month, will encourage the Reserve Bank to leave the cash rate on hold once again." Alan Oster, Nab (Hold): "Still watching wages and house prices." Jonathan Chancellor, Property Observer (Hold): "The bank doesn't move unless it has to, and there's no reason now to." Matthew Peter, QIC (Hold): "The economy still contains sufficient slack to keep underlying inflation at low levels. The RBA will need to keep rates on hold well into 2018 to support our export and import competing sectors, which are currently the drivers of growth." Noel Whittaker, QUT (Hold): "House prices flattening - wages growth slow - why raise?" Nerida Conisbee, REA Group (Hold): "Economy is still too weak to increase and I would say the RBA is waiting to see what the data says early next year. " Christine Williams, Smarter Property Investing (Hold): "Overall the economy has not changed in the last month  Retail is still quite slow leading up to the festive seasons spending." Janu Chan, St. George Bank (Hold): "Low inflation and ongoing spare capacity will keep the rba from raising rates despite a more upbeat outlook for business investment and the labour market." Brian Parker, Sunsuper (Hold): "The data flow over the last month won't have significantly changed their view on the outlook for inflation or growth." Clement Tisdell, UQ-School of Economics (Hold): "No reasons to expect a change." Nicki Hutley, Urbis (Hold): "Modest demand and inflation outcomes present no risk or need to raise rates." Tim Nelson (Hold): "Inflation and wage growth remain low. Both are expected to increase only gradually over time. Further progress is expected on reducing spare capacity in the economy and current rate settings appear consistent with sustainable growth and achieving the medium-term inflation target." Other participants: Bill Evans, Westpac (Hold).
</body></html>

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NAB bring forward first RBA cut to February 2025

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NAB bring forward first RBA cut to February 2025

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