Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

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>.

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

Mortgages

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The RBA rate cut will lure homebuyers into what may be a nightmare journey, the veteran personal finance adviser Noel Whittaker says.
The author of Making Money Made Simple warns FHB against "stretching themselves to achieve the dream of a first home at a time when rates are at historic lows."
<div class="_1665V undefined">
"Eventually, they must start to rise again," he said in a Nine Entertainment column.
<div class="_1665V undefined">
He noted last month the Australian Prudential Regulation Authority instructed lenders to ease up on eligibility criteria. 
</div>
"Relaxing lending standards starts a chain reaction... the number of first-home buyers jumps, the extra demand pushes up house prices and it becomes even harder for young couples to get a foothold into the housing market.
"As prices rise, and affordability worsens, other potential buyers who are saving for a deposit panic, and rush into the market.
<p data-gtm-vis-recent-on-screen-6236702_632="1559705414884" data-gtm-vis-first-on-screen-6236702_632="1559705414884" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">"To make matters worse, before the election the Federal government announced plans to let first-home buyers into the market with just a 5 per cent deposit."
<p data-gtm-vis-recent-on-screen-6236702_632="1559705414884" data-gtm-vis-first-on-screen-6236702_632="1559705414884" data-gtm-vis-total-visible-time-6236702_632="4000" data-gtm-vis-has-fired-6236702_632="1">Whittaker said the final step in the cycle is interest rates rising, homes being foreclosed and housing prices falling, or at least staying flat.
</div>
<div class="_1lC_G">"The latest interest rate cut puts Australia on a slippery slope.</div>
<div class="_1lC_G"> </div>
<div class="_1lC_G">"With rates at historic lows, a cut from 1.5 per cent to 1.25 per cent will do nothing to stimulate the economy.</div>
"Rates are now so low that any changes can make little difference to the economy," he suggested.
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j.ballantyne1990-6AQqhLzZaK

Noel Whittaker says RBA rate cut will lure FHB homebuyers into nightmare journey

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As you would have heard already, earlier today the Reserve Bank Board decided to lower the cash rate by a quarter of a percentage point to 1¼ per cent. This decision comes after more than 2½ years in which we have held the cash rate steady. The last change was back in August 2016.
At its core, today's decision was taken to support employment growth and to provide greater confidence that inflation will be consistent with the medium-term target.
I want to emphasise that the decision is not in response to a deterioration in our economic outlook since the previous update was published in early May. The economic outlook remains reasonable, with the main downside risk being the international trade disputes, which have intensified recently. The Australian economy is still expected to strengthen later this year, supported by the low level of interest rates, a pick-up in growth in household disposable income, ongoing investment in infrastructure and a brighter outlook for the resources sector. So today's decision does not reflect a weaker outlook. Rather it reflects the fact that, even with the expected pick-up in growth, the Australian economy is likely to have spare capacity for a while yet.
Today's easing of monetary policy will help us make further inroads into that spare capacity. It will assist with faster progress on reducing unemployment and will help achieve more assured progress towards the inflation target. So that is our rationale.
I know that many of you are likely to have questions about today's decision. I would like to take this opportunity to provide answers to some of your probable questions. I am also happy to answer your other questions after my prepared remarks.
The four questions that I thought it would be useful to answer are the following:
<ol>
<li>Why did the Board act today, after having held the cash rate steady for more than 2½ years?</li>
<li>Are there more interest rate reductions to come?</li>
<li>Should today's reduction be fully passed through to mortgage rates? and</li>
<li>What about the savers – has the Board forgotten about them?</li>
</ol>
First, why move now, after holding steady for so long?
The answer is the accumulation of evidence. As you would expect, the Board is constantly sifting through masses of data and seeking to understand what are often conflicting signals about the economy. As we have gone about this task over recent times, there has been a progressive accumulation of evidence in support of two conclusions.
The first is that inflation pressures are subdued and they are likely to remain so.
And the second and related conclusion is that there is still significant spare capacity in the Australian labour market.
The most recent batch of data has provided further evidence in support of both conclusions. The March quarter CPI was low and it was below expectations, as was the previous reading on inflation. In addition, the wage data for the March quarter confirmed that wages growth remains subdued, although it has picked up from a year ago. And the recent labour market report also confirmed that strong employment growth is not making material inroads into spare capacity in the labour market. The Board judged that the accumulation of this further evidence meant that it was now appropriate to adjust monetary policy.
Given the importance of these two conclusions, I would like to elaborate a little on them and explore their implications.
The subdued inflation pressures reflect a number of factors. These include slow growth in wages, increased competition in retailing, the adjustment in the housing market – with rents increasing at the slowest pace in decades – and various government initiatives to reduce the cost of living pressures on households. These factors are all putting downward pressure on prices and they are likely to remain with us for some time yet.
Collectively, these factors have contributed to delayed progress in returning inflation to the 2–3 per cent target range. In underlying terms, inflation has now been below 2 per cent for three years and the latest reading was 1½ per cent. Looking forward, inflation is still expected to increase, but it is unlikely to be comfortably within the 2–3 per cent range for some time yet. So the progress on returning inflation to target is more gradual than we had hoped.
It is important to remember, though, that our inflation target is intentionally flexible and that the Australian economy has benefited from this flexibility over the past 25 years. The Board is aiming to ensure that Australia has an average inflation rate of between 2 and 3 per cent over time. The focus is on the average and the medium term.
We have never sought to have inflation always between 2 and 3 per cent. The RBA adopted flexible inflation targeting before other central banks, and this flexibility has served us well. It has allowed the Board to set monetary policy so as best to achieve its broad objectives, with the ultimate aim of contributing to the economic prosperity and welfare of the people of Australia. It has also allowed the Board to look through temporary factors affecting inflation.
This flexibility, however, is not boundless. The point of our inflation target is to provide a strong medium-term anchor that helps deliver low and stable inflation, which, in turn, is an important precondition to sustainable growth in employment and incomes. If inflation stays too low for too long, it is possible that inflation expectations move lower – that Australians come to expect sub-2 per cent inflation on an ongoing basis. If this were to happen, it would be harder to achieve the medium-term inflation goal. So we need to guard against this possibility.
Moving on to our conclusion about spare capacity in the labour market.
For some years, most estimates of full employment, including our own, equated to an unemployment rate of around 5 per cent – it was thought that if unemployment went below that for too long, inflation would rise and become a problem. But, given the combination of the labour market and inflation outcomes we have seen of late, our judgement now is that we can do better than this – that we can sustain an unemployment rate of 4 point something.
It is also worth noting that the supply side of the labour market is turning out to be more flexible than we had earlier expected. The recent evidence is that when jobs are there, more people join the labour force and other Australians stay in work longer. Reflecting this, the participation rate is currently at a record high, despite demographic shifts that we anticipated would reduce participation. It is also the case that people are prepared to work extra hours when there is strong demand for their labour. Together, these observations support the conclusion that there is still spare capacity in the labour market and this is likely to remain the case for a while yet. The recent data have given us more confidence in this assessment and we have responded to this.
Over the past few years, one concern has been that lower interest rates could add to the medium-term risks facing the Australian economy as a result of high household debt. We need to keep a close eye on this issue, but this concern has receded recently. Lending practices have been tightened considerably and many lenders have become quite risk averse. The demand for credit has also slowed due to the changed dynamics of the housing market and slower income growth. So the risks on this front look to be less than they were previously.
This brings me to the second question: are interest rates going to be reduced further?
The answer here is that the Board has not yet made a decision, but it is not unreasonable to expect a lower cash rate. Our latest set of forecasts were prepared on the assumption that the cash rate would follow the path implied by market pricing, which was for the cash rate to be around 1 per cent by the end of the year. There are, of course, a range of other possible scenarios and much will depend on how the evidence evolves, especially on the labour market.
If you accept the argument that a sustainably lower rate of unemployment in Australia is achievable, the question that we should all be thinking about is: how do we get there?
It is possible that the current policy settings will be enough – that we just need to be patient. But it is also possible that the current policy settings will leave us short. Given this, the possibility of lower interest rates remains on the table. Monetary policy does have an important role to play and we have the capacity to play that role if needed.
In saying that, I also want to recognise that monetary policy is not the only option. There are certain downsides from relying just on monetary policy and there are limitations on what, realistically, can be achieved. So, as a country, we should also be looking at other options to reduce unemployment.
One option is for fiscal support, including through spending on infrastructure. This spending not only adds to demand in the economy, but it also adds to the economy's productive capacity. So it works on both the demand and supply side.
Another option is structural policies that support firms expanding, investing, innovating and employing people.
All three options are worth thinking about.
From my perspective, the best option is the third one – structural policies that support firms expanding, investing, innovating and employing people. A strong dynamic business sector is the best way of creating jobs. Structural policies not only help with job creation, but they can also help drive the productivity growth that is the main source of improvement in our living standards. So, as a country, it is important that we keep focused on this.
I will now change tack and move to the third question: should today's reduction in the cash rate be fully passed through to mortgage rates?
My usual practice in answering this question has been to explain that there are a range of other factors that influence mortgage pricing, and then say ‘it all depends’. There are often reasonable explanations for why the standard variable mortgage rate does not move in lock-step with the cash rate.
Today, though, I would like to break with my usual practice and provide a clearer answer. And that is: Yes, this reduction in the cash rate should be fully passed through to variable mortgage rates.
This answer is based on recent reductions in bank funding costs. Not only have these costs declined as a result of the change in monetary policy, but they have also declined because of movements in market-based spreads. Last year, these spreads increased and most lenders responded by increasing their standard variable rates by around 15 basis points. Over recent months, these spreads have reversed all the increase that occurred last year and returned to their 2017 levels. The result is that there has been a substantial reduction – at both the short end and the long end – in the cost of banks raising funds in wholesale markets. Average rates on retail deposits have also come down. This means that the lower cash rate should be fully passed through into standard variable mortgage rates. Full pass-through would also mean that the economy receives the full benefit of today's policy decision.
That brings me to the final question: what about the savers, have we forgotten about them?
I know this question is on the minds of a lot of Australians, especially older Australians. I am reminded of this daily as people write to me telling me how the already low deposit rates are affecting their income. I am expecting to receive more such letters and emails after today's decision.
The Board had a thorough discussion of this issue at our meeting today. We recognise that many Australians have saved hard and rely on interest from term deposits to support their income and spending. Today's decision will reduce their income from this source and we understand why they would be disappointed with the outcome of today's meeting.
At the same time as paying close attention to this issue, the Board considered what was best for the overall economy. Our judgement is that lower interest rates will help the economy as a whole. At the moment, this benefit is likely to come mainly through two channels. The first is a lower value of the exchange rate than otherwise would have been the case. The second is a boost to the disposable income of the household sector. In aggregate, the household sector pays around two dollars in interest for every dollar it receives in interest income. So, in aggregate, lower interest rates reduce the net interest payments of the household sector and so boost overall disposable income.
In time, we would expect the lower exchange rate and the boost to disposable income to lead to more jobs, lower unemployment and a stronger economy. This should benefit us all, although I recognise that in the short run the effects are felt unevenly across the community.
It is partly because of this unevenness that I want to repeat a point I made in answering the second question. And that is: the best approach to delivering lower unemployment and a stronger economy is through structural policies that support firms expanding, investing, innovating and employing people. These policies can have distributional effects too, but the benefits are more broadly based. So, as I said, as we ease monetary policy, it is in the country's interest that other policy options are considered too.
That brings me to the end of my four questions and answers. I hope that this has helped you understand the Board's thinking and why we took the decision today.
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Why the RBA cut rates to record lows: Governor Philip Lowe

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Westpac have cut their interest rate after today's RBA meeting by 0.2 percent.
It is understood there will be higher rate cuts for its IO borrowers at 35bps for investors.
Westpac's rate cut is effective Tuesday 18 June.
David Lindberg at Westpac said the bank took many factors into account in making the decision.
“We are operating in a historically low interest rate environment, which creates the opportunity for home-owners to get ahead on their repayments,” he said.
“It is also a good time for first home buyers to get onto the property ladder with some of the lowest rates in the history of the Australian mortgage market available.”
Westpac announced a range of mortgage interest rate cuts for variable home loan customers and introduced a new first home buyer special for owner occupier principal and interest customers with a fixed rate of 3.49% p.a. for five years.
Westpac customers who choose to package their home loan with the Premier Advantage package receive an additional discount on their home loan rate.  
The following interest rate changes will come into effect on Tuesday 18 June, 2019.  
<ul>
<li>Variable home loan (owner occupier) rate has been reduced by .20% p.a. to 5.18% p.a. for customers with principal and interest repayments.</li>
<li>Variable residential investment property loan reduced by .20% p.a. to 5.73% p.a. for customers with principal and interest repayments.</li>
<li>Variable home loan (owner occupier) rate reduced by .20% p.a. to 5.77% p.a. for customers with interest only repayments.</li>
<li>Variable residential investment property loan rate reduced by .35% p.a. to 6.09% p.a. for customers with interest only repayments.</li>
</ul>
 
David Lindberg, Westpac Chief Executive, Consumer said today’s rate change was carefully considered by the business. 
Currently 69% of Westpac home loan customers are ahead on their repayments, including offset balances.
NAB and CBA cut by the full 0.25 percent.
ANZ cut by 0.18 percent, saying it also had obligations to its deposit holders.
ANZ's new lowest rate will be 3.63%, however they are only passing on a cut of 0.18 basis points effective June 14.
Effective from June 25 CBA's standard variable rate home loans will be reduced by 0.25% p.a.
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Westpac to cut by 0.2% but more for IO borrowers

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Housing markets had remained weak, the RBA has noted today.
The rental vacancy rate in Sydney had increased to the highest level in around 15 years and housing prices in established markets had continued to decline.
"More positively, the pace of price declines had moderated and the modest recovery in auction clearance rates since the start of the year had been sustained," it added.
Sales conditions for off-the-plan apartments and new detached housing had been difficult.
The spike in residential building approvals in February had largely been unwound in March, confirming that underlying conditions for new dwelling activity remained weak.
Data released since the previous meeting had shown that the pipeline of residential work to be done had decreased in the December quarter, but remained high.
RBA board members noted that the forecasts for dwelling investment suggested that population growth could exceed growth in the stock of housing towards the end of the forecast period.
The minutes noted housing credit growth had slowed over the preceding year, but the monthly pace of growth had stabilised over recent months.
In three-month-ended annualised terms, growth in housing lending was around 4½ per cent for owner-occupiers and ½ per cent for investors.
Loan approvals also appeared to have stabilised in recent months.
The central bank noted that, although lending practices were tighter than they had been for some time, the decline in housing credit growth over the preceding year had been driven largely by weaker demand for finance, associated with the decline in housing prices.
The average interest rate charged on outstanding variable-rate housing loans had remained broadly steady.
While banks had increased their standard variable reference rates since mid 2018, rates on new loans had remained materially below the average of those on outstanding loans.
Members noted that banks had recently reduced the rates charged on new fixed-rate loans.
Members discussed the outlook for the domestic labour market in some detail. 
As in the previous meeting, members discussed the scenario where inflation did not move any higher and unemployment trended up, recognising that in those circumstances a decrease in the cash rate would likely be appropriate. 
As noted at the previous meeting, members recognised that the effect on the economy of lower interest rates could be expected to be smaller than in the past, given the high level of household debt and the adjustment that was occurring in housing markets. 
"Nevertheless, a lower level of interest rates could still be expected to support the economy through a depreciation of the exchange rate and by reducing required interest payments on borrowing, freeing up cash for other expenditure," it noted.
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jchancellor-FAypfDUnLy

Housing markets remain weak: RBA minutes

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Australia’s headline inflation rate softened to just 0.1 per cent for the March quarter pushing the annual rate down in seasonally adjusted terms to 1.3 percent from 1.8 percent.
Today’s inflation figures for the Q1 showed a bleak picture, with both the headline and core figures missing economist expectations.
With the CPI coming in at zero, the Aussie dollar plunged. The Aussie dollar fell over half a cent against the greenback in quick response.
Interest rate cuts are now surely on the table at the next RBA meeting, economists suggest.
Columnist Pete Wargent described it as an "epic miss."
"The incompetence, ineptitude and policy failure of the RBA is now there for all to see," tweeted Stephen Koukoulas.
"An interest rate cut on 7 May - based on a weak economy - will be hugely interesting during the election campaign," he added.
The core figures matched expectations, keeping the annualized inflation rates below the Reserve Bank of Australia’s (RBA) 2-3 percent target range.
The Commsec economist Craig James noted: "Inflation is clearly not an issue."
"The published rate of inflation didn’t budge in the first three months of the year.
"Strip out volatile items and ‘underlying’ prices advanced around 0.2 per cent.
"In annual terms, annual inflation stands at a 2½-year low.
"Arguably the annual rate of ‘underlying’ inflation is the lowest on record at 1.4 per cent," James said.
James said the door "remains ajar to a rate cut."
"That is, should a rate cut be needed.
"The unemployment rate remains near decade lows – indeed the NSW trend jobless rate is at record lows."
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CPI stays low

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The latest RBA minutes have noted a larger-than-expected fall in dwelling investment.
Dwelling investment appeared to have passed its peak, although there continued to be uncertainty about how quickly dwelling investment might decline over the forecast period, it noted.
Members noted financial market participants' expectations of a rate cut had been brought forward following weaker than expected data, most notably the December quarter national accounts. 
It noted financial market pricing implied that the cash rate was expected to be lowered in the second half of 2019 and then again in 2020.
The board "recognised that the effect on the economy of lower interest rates could be expected to be smaller than in the past, given the high level of household debt and the adjustment that was occurring in housing markets."
But members agreed that there was "not a strong case" for a near-term adjustment in monetary policy.
Members recognised that it was not possible to fine-tune outcomes and that holding monetary policy steady would enable the Bank to be "a source of stability and confidence."
It noted in Australia, conditions in the housing market had remained weak.
Housing prices had fallen further in the capital cities and regional areas.
Over the preceding six months, the falls had been largest in Sydney and Melbourne, but prices in these cities had remained more than 40 per cent higher than in 2012.
Falls in housing prices had resulted in some borrowers having negative equity, where the value of their loans exceeded that of their properties. Nationally, just over 2 per cent of borrowers, accounting for less than 3 per cent of housing debt, were estimated to have negative equity. Around 90 per cent of these borrowers were in Queensland, Western Australia and the Northern Territory.
Members observed that negative equity by itself was not a concern for financial stability.
"However, if unemployment were to rise and borrowers were not able to continue to make repayments, then financial institutions would incur increased losses."
Members noted that the decline in high loan-to-valuation ratio (LVR) lending in recent years was expected to lessen any losses for lenders. In recent quarters, almost all loans to investors had LVRs less than 90 per cent. By contrast, a decade earlier only 85 per cent of loans to investors had LVRs less than 90 per cent. The share of owner-occupiers with high LVR loans had also declined.
Members also noted that total household payments on housing debt as a share of income had been broadly stable in recent years.
"Within the total, however, an increase in scheduled principal repayments had roughly offset a fall in unscheduled principal repayments."
Members noted that households' excess payments amounted to about two-and-a-half years' worth of scheduled repayments on average. Housing loan interest payments had increased slightly as housing debt had increased.
Construction of new dwellings had contracted in the second half of 2018; the largest falls in the December quarter had been for apartments in New South Wales and detached housing in Queensland.
Slower housing activity had also weighed on the incomes of some building contractors and property professionals in the December quarter.
There continued to be a large amount of work in the pipeline, which should support a relatively high level of building activity in the near term.
Members noted that there had been a substantial rise in building approvals for high-density residential projects in February, although this series was volatile and in trend terms remained well below earlier peaks.
Members also noted that population growth was expected to continue to support demand for housing over the medium term.
Conditions in the established housing market had remained weak in recent months, the April minutes noted.
"Housing prices had continued to fall in Sydney, Melbourne and Perth, and had declined a little in most other capital cities and regional areas.
"In March, Sydney prices were 13 per cent below their 2017 peak and Melbourne prices were 10 per cent below their peak.
"Although auction clearance rates in Sydney and Melbourne had increased over the first quarter of 2019, they remained at relatively low levels."
Members noted that in Perth, housing prices had declined over the previous year, while the rental vacancy rate had declined sharply and there were signs that newly advertised rents were starting to increase.
By contrast, rental vacancies in Sydney had risen, particularly in suburbs where the supply of new apartments had increased significantly.
Growth in consumption had clearly slowed in the second half of 2018, it noted.
"The weakness had been concentrated in discretionary items, especially those that have historically been most correlated with housing prices and housing turnover, such as motor vehicles and home furnishings.
"Retail sales data and contacts in the Bank's liaison program suggested that growth in housing-related consumption had remained soft in recent months."
Members noted that growth in household disposable income, which is an important driver of consumption growth, had been subdued for a number of years. 
In 2018, labour income growth had been above the very low rates seen in recent years, supported by a pick-up in growth in average hourly earnings and continued employment growth, but non-labour income growth had remained weak.
The RBA members observed that tax payments by households had been growing noticeably faster than income growth in recent years, partly because of efforts to increase tax compliance.
The members discussed scenarios in which a rate cut might be needed.
"Members agreed that inflation was likely to remain low for some time," the minutes noted.
"Members also discussed the scenario where inflation did not move any higher and unemployment trended up, noting that a decrease in the cash rate would likely be appropriate in these circumstances.
"They recognised that the effect on the economy of lower interest rates could be expected to be smaller than in the past, given the high level of household debt and the adjustment that was occurring in housing markets.
"Nevertheless, a lower level of interest rates could still be expected to support the economy through a depreciation of the exchange rate and by reducing required interest payments on borrowing, freeing up cash for other expenditure."
To read the full RBA minutes, <a href="/expert-insights/finance/minutes-of-april-2019-monetary-policy-meeting-of-the-reserve-bank-board">click here</a>.
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RBA notes larger-than-expected fall in dwelling investment

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RBA members have noted their uncertainty about the extent and speed of the downturn in the dwelling investment cycle.
Dwelling investment was likely to have been close to its peak in the second half of 2018, the February minutes of the central bank advised.
"Although there was still a large pipeline of residential work to be done and few signs that projects already under way were being cancelled, it had become more difficult for new apartment projects to obtain finance, and building approvals were the lowest they had been for five years. 
"As a result, dwelling investment was expected to remain at a high level in the near term, but then to decline faster than previously expected."
From a longer-run perspective, the RBA members assessed that, following such large increases in housing prices, the effect of the recent price falls on overall economic activity was expected to be relatively small. 
"However, members observed that if prices were to fall much further, consumption could be weaker than forecast, which would result in lower GDP growth, higher unemployment and lower inflation than forecast. 
"From a financial stability perspective, tighter lending standards, an improving labour market and low interest rates were all likely to support households' capacity to service their debt. 
"Few households were in negative equity positions despite the falls in housing prices, implying that banks' losses would be limited even if household financial stress were to become more widespread."
Members spent some time considering a paper on the implications of recent developments in housing markets for the economic outlook.
After rising by almost 50 percent over the five years to September 2017, national housing prices had fallen by around 8 per cent to be back around mid-2016 levels.
Members noted the significantly different developments in housing prices across the country.
Housing prices had fallen by 12 percent in Sydney and by 9 percent in Melbourne from their peaks in 2017.
There had also been significant falls in housing prices in Perth and Darwin over recent years.
By contrast, housing prices in Hobart and Canberra had increased over 2018, while housing prices in Adelaide, Brisbane and many regional centres had been flat.
Members noted that the cumulative falls in housing prices in Sydney and Melbourne were relatively large by historical standards, and that it was unusual for housing prices to fall significantly in an environment of low mortgage interest rates and a declining unemployment rate.
Members noted that some of the dynamics in housing prices could be explained by the fact that the supply of housing does not respond quickly to changes in demand.
In particular, the run-up in housing prices had occurred during a period when housing supply had not picked up sufficiently to match higher demand from more rapid population growth.
Over time, higher housing prices had eventually led to a sizeable increase in supply, but this had taken longer than in previous cycles.
Another factor weighing on prices was a noticeable decline in demand from foreign buyers in recent years, which had also been apparent in housing markets in some other economies.
The RBA minutes noted rental vacancy rates are one key indicator of the balance of supply and demand in the housing market.
In most states, rental vacancies had been around or somewhat below average at the end of 2018, suggesting supply and demand for housing had been roughly balanced.
In Melbourne, despite the fall in prices and large increase in supply, the vacancy rate had declined.
By contrast, rental vacancies in Sydney had been increasing and advertised rents had fallen.
Members also noted that housing credit growth had declined further in preceding months and that there had been a notable drop in loan approvals by the major banks.
Growth in lending to investors had slowed sharply since mid 2017 to be close to zero, while growth in lending to owner-occupiers had moderated to around 5½ per cent in six-month-ended annualised terms.
The slower growth in lending for housing over the preceding year appeared to reflect weaker demand, the minutes advised.
"Nevertheless, credit conditions for some borrowers had remained tighter than they had been for some time following the strengthening of lending policies and practices over recent years.
"Liaison with mortgage brokers suggested that the increased public scrutiny associated with the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry may have led some individual loan assessors at banks to apply stricter criteria than specified in official lending requirements.
"However, banks reported that while loan assessors had been referring more approvals to credit officers, final loan approval rates had remained high.
"Moreover, lenders had continued to compete for borrowers of high credit quality by offering new loans at lower interest rates than those offered on existing loans."
To read the full minutes, <a href="/expert-insights/finance/minutes-of-february-2019-monetary-policy-meeting-of-the-reserve-bank-board">click here.</a>
 
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RBA has uncertainty about the extent and speed of the downturn in dwelling investment cycle: February 2019 minutes

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The Reserve Bank assistant governor Christopher Kent says the recent depreciation in the Australian dollar has been "helpful" at a time where inflation remains weak and the economy is still using up spare capacity.
“While the exchange rate is still within the relatively narrow range of the past few years, the recent depreciation is helpful at the margin given that there remains spare capacity in the economy and inflation remains below target,” Reserve Bank of Australia Assistant Governor Christopher Kent said in a speech in Melbourne last Friday hosted by FX provider XE.
<div class="hardwall" data-position="2">The address traced the fluctuating outlook in recent months as “modest revisions” to global economic growth and inflation combined with greater attention to downside risks from central banks and investors.</div>
<div class="hardwall" data-position="2"> </div>
<div class="hardwall" data-position="2">"After a lengthy period of relative stability, global financial markets have been more volatile over the past few months.</div>
<div class="hardwall" data-position="2"> </div>
<div class="hardwall" data-position="2">"The incoming data from around the end of 2018 was associated with a tightening in financial conditions: global equity prices declined; corporate credit spreads widened; issuance of corporate debt eased; and volatility picked up across most markets.</div>
<div class="hardwall" data-position="2"> </div>
<div class="hardwall" data-position="2">"And in the space of only a couple of months, the market's expectations for monetary policies changed markedly and there was a notable downward shift in yield curves."</div>
<div class="hardwall" data-position="2"> </div>
<div class="hardwall" data-position="2">Kent noted local money markets switched their assessment of the next move in the cash rate to “more likely to be down than up.”</div>
<div class="hardwall" data-position="2"> </div>
<div class="hardwall" data-position="2">Earlier this month Governor Philip Lowe tempered the bank's more optimistic language when the RBA kept the cash rate at a record low 1.5 per cent for a 30th month, but dropped its longstanding prediction that an improving economy meant the next move was likely to be upwards.
</div>
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A$ adjustment assisting economy: RBA's Christopher Kent

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A cash rate cut from the Reserve Bank of Australia (RBA) seems more likely now than it has in years, according to Finder, Australia’s most visited comparison site.
All 28 experts and economists in Finder’s <a href="https://protect-au.mimecast.com/s/tJ9mCD1v12hB883nI54aSQ?domain=finder.us9.list-manage.com" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/tJ9mCD1v12hB883nI54aSQ?domain%3Dfinder.us9.list-manage.com&amp;source=gmail&amp;ust=1549307762488000&amp;usg=AFQjCNGD0AHNNDFlCBL10yngE2qDdo6OcQ">RBA cash rate survey</a> are expecting a hold at 1.50% on Tuesday, but their predictions swung dramatically about the direction of the next move to come. For the past two years, about 80% of experts have predicted a hike as the next cash rate move. This month, only 40% (11/28) did so. Stephen Koukoulas, managing director at Market Economics said he could see a change happen in as little as a month. "[The RBA] will acknowledge the economy is weaker than when it last met and will signal a change in bias towards an easing.  “It may wait a month or two before acting on that bias," Koukoulas said. Graham Cooke, insights manager at Finder, said of the panelists who put a date on their rate drop, predictions were pretty evenly spread throughout the year from March to November.  “This is the most dramatic shift I have seen in four years of running our cash rate survey.  “Economists are now swinging significantly in favour of a cut this year, but nobody can agree on exactly when this will happen,” Cooke said. <img src="https://ci6.googleusercontent.com/proxy/jiQUG11OCkOuDP24-WepAOoFyrIk9BDpJgv2AKWF_icw0Ye8ix0d5ISsYpWprAnHuVcasZ_fHx4aki29ZKq7UToHuGO5TTl9hM5aYykkShFrjcDhrMhuBikrl8cdYTAs-5ILoyi0PMSCulAN5UCcItvUGC6yPd4m1y4=s0-d-e1-ft#https://gallery.mailchimp.com/cc5e9bce699fa1d71a67cf499/images/5db05eb6-ce37-4c6f-a434-8ecf89c51a59.png" width="600" height="355"> Cooke said that the severity of the housing downturn in recent months was the top reason cited by experts who changed their prediction.  “Along with housing concerns, inflation is still sitting below two per cent, so another cut may be needed to stimulate the economy.  “The only issue with further cuts is that it reduces the ability of the RBA to adapt to softer economic conditions in the future,” Cooke said.  Finder’s Economic Sentiment Tracker has also seen a significant shift.  Positivity regarding employment in Australia fell from 56% in December to just 29% in February.  Economists indicated that, though unemployment is still low, a weakening of job prospects looms on the horizon.  Koukoulas said the economy is on a slower growth path,  judging by GDP.  “Looking at many economic factors, it looks like growth will be weaker in the next quarter.  “The labour market tends to lag behind the greater economy by a couple of quarters. “This trend – combined with lower job vacancy advertising numbers – indicates a risk that employment will be weaker in the first half of this year versus previous years,” Koukoulas said.        <img src="https://ci3.googleusercontent.com/proxy/5_PXx_mfrsOnYwep55QO0q4W2B8Ghup7SDytJG92y9i9uMgMlr3E06ZaOfSYGdSC_9a_nRaOLIrB4VT0mi6Ll6r5UhoQpSOJp2x40ohsTmrypEMuXbtqr5FYaiKHo121x-Qk4I-tbxjp4VJaGjMImWWZii9dJWoslZs=s0-d-e1-ft#https://gallery.mailchimp.com/cc5e9bce699fa1d71a67cf499/images/82b136ff-b0b6-4e3b-bfa6-d84b2ff9d648.png" width="550" height="382"> Cooke said the results aren’t all gloom and doom. “With house prices continuing to tumble, the outlook for housing affordability remains strong. “It’s true some lenders are making out-of-cycle rate hikes – we’ve seen 96 i<a href="https://protect-au.mimecast.com/s/rzkpCE8w82hWZZpgFp6ssI?domain=finder.us9.list-manage.com" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/rzkpCE8w82hWZZpgFp6ssI?domain%3Dfinder.us9.list-manage.com&amp;source=gmail&amp;ust=1549307762489000&amp;usg=AFQjCNHKpyCRSjUveLfLU96MBZVAB7QunQ">n the </a><a href="https://protect-au.mimecast.com/s/lMzUCGv0v2sJzzA0CQwB-C?domain=finder.us9.list-manage.com" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/lMzUCGv0v2sJzzA0CQwB-C?domain%3Dfinder.us9.list-manage.com&amp;source=gmail&amp;ust=1549307762489000&amp;usg=AFQjCNExrbXqujboxTfDArQUy2YXJpYoFw">loans we compare on Finder</a> so far this year – but not all banks are raising rates. In fact we’ve also seen 69 lenders cut rates. “The bottom line is if you’re looking to buy now, it’s overwhelmingly a buyer’s market. Use your bargaining power and look for value before you buy,” Cooke said.       <img src="https://ci4.googleusercontent.com/proxy/kpJqBzCgbPeX5NZzFJOP3U_BaptvJcaG5I4ZczF0wQ5Lmyd8JHTObAXDUApObu4ZJZxZYeutkcvEDGEe40Zd85JDnCP5d4y-d53RaSZvNy-eU8l0az_BfD1yBrA6H92JEIEoXUdCvR4y5yIfyoODMhkAqYTaWCCqwrs=s0-d-e1-ft#https://gallery.mailchimp.com/cc5e9bce699fa1d71a67cf499/images/ede2ba44-596b-4d3d-b21e-79a352b72bf9.png" width="550" height="358"> Here’s what our experts had to say: Shane Oliver, AMP Capital: "While economic data has generally been soft since the last Board meeting in December, it's unlikely to have been weak enough yet to prompt the RBA to cut rates, particularly given that its bias has still been to raise rates." Alison Booth, ANU: "The fundamentals have not yet altered sufficiently to warrant [the RBA] to change." John Hewson, ANU: "Data uncertainty and concern economy is slowing." Malcolm Wood, Baillieu: "Underlying inflation is below the low end of the RBA's target band and underlying economic momentum appears to be deteriorating." Ben Udy, Capital Economics: "The housing downturn is becoming more severe and will weigh on the economy over 2019. But given the labour market remains in good shape for now, we suspect the RBA will remain on hold for the time being." Michael Blythe, CBA: "Reasonable economic backdrop says next move is probably up.  But low inflation means no hurry to act." Trent Wiltshire, Domain: "The RBA is very reluctant to cut rates. Despite some weak economic data since the December meeting the RBA will maintain a fairly optimistic outlook for the economy." Peter Gilmore, Gateway Bank: "Growth is still likely to be above trend." Mark Brimble, Griffith Uni: "There is little net direction from indicators, with an overall bias to more support being needed given the out of cycle increases of rates by institutions." Tim Nelson, Griffith University: "There is no strong case for an adjustment of monetary policy." Peter Haller, Heritage Bank: "Economic conditions have not materially changed since the previous RBA meeting in December and there is no basis for a change at this time." Tim Reardon, Housing Industry Association: "GDP remains solid. Unemployment low and no evidence of inflationary pressure." Michael Witts, ING: "Despite the increased market talk about the prospect of an easier stance from the RBA, if this scenario is to emerge it is likely to be around mid year. Underlying economic data remains positive for the time being." Peter Boehm, KVB Kunlun: "No reason to move rates at this stage." Leanne Pilkington, Laing+Simmons: "Some economists now believe the next official rate movement will be down instead of up. The Reserve Bank will need firm justification as a move either way will be heavily scrutinised. We don’t see any justification to adjust rates at this time." Stephen Koukoulas, Market Economics: "It will acknowledge the economy is weaker than when it last met and will signal a change in bias towards an easing. It may wait a month or two before acting on that bias." John Caelli, ME Bank: "Given low unemployment and wages are starting to rise, the Reserve Bank is unlikely to cut rates in the near term. Likewise, with house prices continuing to fall, tightening credit, and CPI below the target band, a rise in the cash rate is also unlikely. It’s wait and see for now." Michael Yardney, Metropole Property Strategists: "The jobs growth figures for December will give the RBA comfort at a time of slower local economic growth and difficult world economic circumstances. With no wages growth and our challenging property markets and the real likelihood of further falls in property values especially in Sydney and Melbourne, the RBA will now have to seriously consider the option of lowering rates this year." Mark Crosby, Monash University: "While the international situation is deteriorating, there is no reason to move rates at the February meeting." Jacqueline Dearle, Mortgage Choice: "As wages continue to flat line and spending appears to be fuelled by a mix of credit and savings, consumers may be entering 2019 with a slightly pessimistic view. Continued low inflation, that’s sitting below Governor Lowe’s target; and the softening property market coupled with the tightened lending environment, only adds to disappointing Australian GDP/economic and global concerns stemming from Trump’s trade war with China. The upcoming federal election also adds a feeling of stasis to lacklustre economic data. In February, a myriad of signposts continue to suggest rates remaining on hold but down the track the next move in the cash rate could well be downward. However this could impact on the Aussie dollar, giving the RBA a lot of big issues to consider as the New Year kicks off." Dr Andrew Wilson, My Housing Market: "Although recent data is clearly increasing the chances of a near-term cut in official rates, recent statements by the RBA continue to indicate an ongoing conservative stance on rate settings. This however is likely to change if GDP data to be released on March 6 is again disappointing. In those circumstances the RBA will be motivated to cut rates  - particularly prior to the onset of a likely lengthy federal election campaign." Matthew Peter, QIC: "The market is now pricing the next move of the RBA to be a 0.25% cut sometime in early 2020 as China slows and the housing market continues to correct. These headwinds are yet to derail the economy, as shown by the strong December labour market data. The RBA will stay on hold until 2020, but failing a crash in China and the housing market, the next move in rates will be up." Noel Whittaker, QUT: "There is no way they will increase them with the housing market the way it is – and I can't see them reducing them." Nerida Conisbee, REA Group: "Economic data coming out is still too mixed to make a decision to move rates. While CPI remains low, and GDP growth in September was lower than expected, unemployment is now at just 5%. In Sydney, it is at its lowest rate since 1974." Christine Williams, Smarter Property Investing P/L: "The economy is not as strong as expected.  Also I believe the RBA is waiting for Royal Commission Report to be released." Janu Chan, St.George Bank: "There continues to be strength in the labour market. However, the downside risks for the global economy has increased. The Australian economy is also not growing as strongly as previously thought. The balance of these risks suggests the RBA could tone down its stance of the next move being up but to remain on hold for some time. However, not likely to the extent that the RBA will be ready to lower rates." Richard Holden, UNSW: "No chance they raise given housing and inflation."
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RBA to hold rates in February, but 2019 cut prospect looms

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The December meeting of the RBA has seen the cash rate remain on hold at 1.5 percent.
It has now stayed at record lows for 28 consecutive months, and 26 consecutive meetings.
The August rate hold marked the two year anniversary of the last change to the cash rate by the RBA.  
Australian mortgage holders could "go a decade without experiencing an increase in official interest rates by the Reserve Bank of Australia (RBA), says mortgage broker 1300HomeLoan Managing Director John Kolenda.
"Its last rate rise from 4.5 per cent to 4.75 per cent was way back in November, 2010.
“Since the central bank last lifted official rates there have been 12 rate reductions, with the RBA now staying on the sidelines for more than two years,” Mr Kolenda said.
“With no evidence of a significant improvement in the domestic economy, many forecasters expect the cash rate will remain on hold through 2019 and also the following year.
“That means a whole generation of mortgage holders could go an entire decade without seeing official rates rise, although they will have experienced out of cycle rate movements from lenders.”
CoreLogic's head of research Tim Lawless said its hard to gauge the RBA's view on housing market conditions.
"The longest period of interest rate stability on record has extended out another month, with the RBA keeping the cash rate on hold at 1.5% where it has remained since they cut the cash rate by 25 basis points in May and August of 2016. 
"Considering the diversity of economic conditions, the hold decision comes as no surprise. 
"Labour markets are improving, but wages growth remains sluggish and inflation has softened. 
"It’s a bit harder to gauge the RBA’s view on housing market conditions, with the RBA continuing to call out weakening conditions in Sydney and Melbourne. 
"CoreLogic data to the end of November highlighted that the Sydney market has already recorded a 9.5% decline in values since peaking in July last year and will likely surpass the previous record peak to trough decline of 9.6% which was set during the last recession between 1989 and 1991.
"Despite this weakness in the largest cites, dwelling values in Sydney remain 41% higher than they were five years ago and Melbourne values are still 38% higher both of which show five year growth rates well in excess of most other capital city markets. 
"Additionally, five of the eight capital cities have posted a capital gain over year to date however, from a macro view they have much less of an influence on the national figures than Sydney and Melbourne do.
"To date we haven’t seen the housing downturn impacting on household consumption or saving, however this is likely to be a key factor the RBA will be monitoring.  
Siobhan Hayden, COO of online home loan marketplace HashChing, said Christmas is the best time to hunt around for a new home loan.
“The Christmas and New Year period is an expensive time of year, and one that forces many of us to consider our current financial position. The great thing is that it’s also a highly competitive season in the market – making it the perfect time to hunt around for a new home loan, or even help a loved one find the best rate on theirs.
“It’s fantastic to see an uptick in borrower’s actively taking charge of their financial position and getting ahead of likely interest rate rises in 2019.”
“As anticipated, falling house prices have warmed the market, particularly in the lower end of the market (&gt;$1.3m), however with the cash rate expected to increase next year it will be interesting to see whether this demand continues."
HashChing's broker survey found almost half (48 per cent) of the brokers surveyed agree with Morgan Stanley’s forecast that national house prices could fall by up to 15 per cent in 2019. 
 
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