Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Joel Robinson

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

Interest Rates

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GUEST OBSERVER
No surprises as the RBA held its cash rate steady at 1.75 percent. 
Of course, this follows an action-packed and finely-balanced May meeting, where the central bank cut to a new record low. Now the question being asked is: what's next and when? Is it one and done, or is there more to come? 
The statement was very light on any hints about what might happen next. In short, there was no real forward guidance. The statement noted that 'inflation has been quite low ... [and that] ... this is expected to remain the case for some time'. 
At the same time, it noted that non-mining domestic demand has been 'expanding at a pace at or above trend'. In our view, the RBA will need to see the Q2 CPI print (due on 27 July) before it would consider cutting further. Our central case is for a 25bp cut in August, to 1.50%, and for the RBA to remain on hold in subsequent quarters. 
Facts 
The RBA held its cash rate unchanged at 1.75 percent, as expected by 25 of 26 economists in the Bloomberg survey (including HSBC). Immediately prior to the announcement the market was pricing a 6 percent chance of a 25bp cut. 
Implications 
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Is it one and done, or is there more to come? Well, if you are looking for hints in today's post- meeting statement, you may be sadly disappointed. It was more backward-looking than usual and contained very little that could be described as forward guidance. 
On growth, the statement described the Q1 GDP figures suggesting that, despite 'a very large decline in business investment' non-mining domestic demand had been 'expanding at a pace at or above trend'. At the same time, it stated that 'inflation has been quite low' and that this was expected 'to remain the case for some time' (the one clear reference to the future). The RBA noted that low inflation was due to 'very subdued growth in labour costs and very low cost pressures elsewhere in the world'. The statement did not attempt to reconcile the apparent disconnect between the strong local growth and weak inflation. 
On the housing market, the statement noted that although 'supervisory measures have strengthened lending standards' ... 'dwelling prices have begun to rise again'. It then also noted that 'a considerable supply of apartments is scheduled to come on stream' leaving the reader to draw the conclusion that boosted supply might help to slow housing price growth in the future. 
More generally, the statement noted that low interest rates and the lower AUD are assisting the rebalancing act to proceed, although the central bank repeated that an 'appreciating exchange rate could complicate' the rebalancing of growth.
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Finally, the statement noted that a key reason for not moving this month was that the RBA had just cut the cash rate in May. Again, this is quite backward-looking. It seems to us that the central bank will need to see the Q2 CPI print (due on 27 July) before it would consider cutting further. 
<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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jchancellor-FAypfDUnLy

RBA on hold, with little forward guidance: HSBC's Paul Bloxham

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The founder of Aussie Home Loans John Symond doesn't think we need cheaper official interest rates at the moment.
Talking to Ross Greenwood on the 2GB Macquarie network's Money News following the June interest rate hold, Symond also said that he doesn't think the Reserve Bank will cut anytime soon.
'I don't think they will, or they should," he said.
"The economy would have to take a hit, I believe, for the Reserve Bank to be coughing it up to drop rates even further.
"The further they go down the further they will have to eventually go up.
"I don't think we really need cheaper official rates at the moment."
Symond said that he thinks the Reserve Bank knows the interest rate drops don't have the impact it used too.
"I think we're beyond that and I think the Reserve Bank acknowledges that the interest rates lever dropping rates no long has the impact it used to because they're so low."
"I just don't believe someone would decide now's the time to go out and buy because rates have dropped a 1/4 percent.
"We've got the lowest interest rates in history, so by comparison to over the last decade the rates are just so cheap and I don't believe it's now a factor of will rates go cheaper if they do it'll give me confidence to go and buy
Talking about growing the economy, Symond suggested that hopefully once the election is out of the way the people will get back to making decision moving forward.
"We've got to find ways t grow the economy and that's the critical path now."
"You can't just say low interest rates are going to cure all our issues"
"We need to grow the economy and the sooner we get this election out of the way, hopefully the sooner the people get back to making decisions moving forward.
Talking about what the loan book looks like now, Symond suggested that there haven't been significant improvements.
"There's still a healthy level of activity in sectors of housing," he said.
"Investors are still very very subdued because of all the new lending rules and government rules.
"First home buyers are still struggling to try to get into the market."
He said that refinancers are on the increase and so they ought to, as research he did recently showed over half of all people with home loans haven't looked at refinancing in the past 10 years which is costing Australians billions of dollars.
Symond suggested competition is still as "red hot" as he's seen it in his nearly 50 years.
He concluded by suggesting there won't be another cut soon despite economists beliefs, but potentially some months away.
"Im hoping it won't happen because I'm hoping the Australian economy does better than it has and it doesn't go backwards because every time rates go down, it's a measure of the health of our economy.
"The further down it goes, the further the state of our economy goes down hill and we don't want that," he added.
You can listen to the <a href="https://www.2gb.com/article/money-news-full-show-tuesday-7-june-2016" target="_blank">full interview here.</a>
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j.ballantyne1990-6AQqhLzZaK

John Symond says rates don't need to go lower 

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GUEST OBSERVERS
The RBA left the cash rate unchanged at 1.75 percent and provided no explicit forward guidance. The Bank seems confident that the transition to non-mining activity is continuing but remains worried about low inflation.
The lack of forward guidance means that an August rate cut is a much closer call than we had previously thought. That said, we continue to think that the extent of the downgrade to the RBA’s inflation forecasts and ongoing weak price pressures suggest that on balance the Bank will cut rates again in August, although it is now more data dependent.
DETAILS
The lack of a clear easing bias was the big surprise in today’s statement. The large downgrade to inflation in the May Statement on Monetary Policy suggested to us that more than 25bp of easing was required to keep real interest rates low, where the RBA’s forecasts also hinged on a further easing. Moreover, the Bank rarely cuts rates only once.
Last week’s strong Q1 GDP results were clearly encouraging for the Bank. RBA Governor Glenn Stevens noted that “despite a very large decline in business investment...other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend”. The Bank also seems more positive about the labour market, noting the indicators are “consistent with continued expansion of employment in the near term”.
We expect, though, that the weak inflation outlook will continue to dominate the policy outlook. The Bank reiterated its concerns over inflation, noting that “inflation has been quite low...[and] this is expected to remain the case for some time”. The large downgrade to the RBA’s forecast inflation profile, where the average inflation forecast remains at or below the lower bound of the 2-3 percent target band for the entire forecast period, strongly suggests to us that the Bank will need to ease further. The recent uptick in the exchange rate and a possible delay to Fed tightening only puts further pressure on the cash rate.
Interestingly, the RBA seems relatively unperturbed by the recent pick-up in housing. The RBA acknowledged the recent rise in house prices, but noted that “lenders are also taking a more cautious attitude to lending in certain segments” and that “considerable supply of apartments is scheduled to come on stream”.
<a href="/images/2016/06/07/Screen%20Shot%202016-06-08%20at%209.10.12%20AM.png" target="_blank">Click to enlarge</a>
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<img src="file:///page1image32864" alt="page1image32864" width="313.393247" height="0.167557"><img src="file:///page1image33024" alt="page1image33024" width="313.393247" height="0.167557"><img src="file:///page1image33184" alt="page1image33184" width="313.728361" height="0.502670"> MARKET IMPLICATIONS
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While the RBA continued to reference any currency appreciation as a factor that can complicate the economic adjustment, these words will be superseded by the lack of an explicit bias in the final paragraph of the statement. With this guidance lacking, and weeks before we get any further read on either inflation or wages, the AUD will likely perform better on crosses, most notably AUD/NZD. Further depreciation against the USD will now become contingent on more USD strength. 
Rates markets have reacted to the RBA’s statement with higher yields across the term rates structure. RBA meeting date OIS pricing has shifted between 4-5 basis points higher, with the first full cut priced for June 2017. Further out the curve, the 3 year rate has risen by 8 basis points. We expect that significant sell-offs will find a base, particularly given a bounce in the AUD may be seen as a reason for easing. 
OUTLOOK 
The lack of an explicit easing bias makes an August rate cut a much closer call than we had previously thought. That said, we continue to expect a further cut given the size of the downgrade to the Bank’s inflation forecasts and the fact that the mid- point inflation forecast remains at or below the lower bound of the 2-3% target band for the entire forecast period. 
Felicity Emmett is head of Australian Economics, ANZ, Daniel Been is senior FX strategist and Martin Whetton is senior rates strategist. They can be contacted <a href="https://www.anz.com/corporate/research/" target="_blank">here</a>.
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RBA on hold in June and a higher bar for an August cut: ANZ's Felicity Emmett

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GUEST OBSERVER
The Reserve Bank has left the cash rate at a record low of 1.75 percent. The Reserve Bank has maintained a “neutral stance” – indicating that policymakers will assess more information before deciding the next move on rates.
What does it all mean?
Did the Reserve Bank get it wrong when it cut rates last month to fresh record lows? Certainly all of the subsequent economic data have been strong including economic growth, which is now running at the fastest annual rate in 31⁄2 years.
The short answer is no. The Reserve Bank was already expecting Australian economic growth to be running at a 3 per cent annual rate over the next year. The Reserve Bank is always forward-looking – and despite expectations of solid 3 per cent growth, it cut rates. Simply, the Reserve Bank feels that the economy can run at a 3 per cent plus rate and not generate higher inflation. 
Certainly the environment has changed – with companies challenged by “disruption” at every turn, causing managers to focus on increasing productivity and efficiency and reducing costs rather than lifting prices. The Reserve Bank now assumes that underlying inflation will hold in a 1.5-2.5 percent range. That is, a mid-point of 2 percent is expected – the bottom of the Reserve Bank’s 2-3 percent target band.
Since the rate cut in May, the Aussie dollar has fallen from US77 cents to around US73-74 cents. And the currency is weaker despite higher commodity prices. The RBA notes “Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector.”
The accompanying statement was quite short. But there are interesting observations on housing. The RBA notes a lift in home prices. But it warns “considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.” 
Perspectives on interest rates
The Reserve Bank left the cash rate at a record low of 1.75 percent. The previous rate cut was in May 2016 (25 basis points), taking the cash rate to a record low of 1.75 percent. 
There have been 11 rate cuts since November 2011.
The Reserve Bank had previously lifted rates seven times from October 2009 to November 2010 – a total of 1.75 percentage points, from 3.00 percent to 4.75 percent.
What are the implications of today’s decision?
We expect the Reserve Bank to stay on the interest rate sidelines until August. At the August meeting the Reserve Bank will have digested the latest inflation data (released end July) as well as the Brexit decision in the UK and the June and July rate decisions in the US.  
On balance rates still have scope to fall. It all depends on the Reserve Bank’s assessment on how fast the economy can grow without generating inflation above the upper end of the 2-3 percent target band.
This is a brave new world where old assumptions are being challenged. Investors need to do this also. In the past investors could work on the assumption of total sharemarket returns lifting on average by 9-11 per cent. With nominal economic growth closer to 4-5 percent, expected sharemarket returns also need to be adjusted down to a similar range.
Returns on residential real estate have averaged 13 per cent over the past two years. But over 2011 and 2012 returns averaged 2 per cent. With housing supply set to rise, even views on high-flying real estate will need to be adjusted downwards.
<a href="/images/2016/06/07/Screen%20Shot%202016-06-07%20at%203.08.56%20PM.png" target="_blank">Click to enlarge</a>
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Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>.
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Reserve Bank mulls the next move: CommSec's Craig James

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Further cuts are predicted later this year, but for now the RBA has decided to leave interest rates on hold. Mozo Director Kirsty Lamont shares the five numbers you need to know: 
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<img src="/images/2016/06/08/4.53.jpg" alt="">
One month has passed since the RBA’s record rate cut and the new average variable rate has settled at 4.53 percent. 
<img src="/images/2016/06/08/126%20.jpg" alt="">
 
This is how much the average borrower could save in monthly repayments if the RBA slashes the cash rate to 1% as predicted by some economists. 
<img src="/images/2016/06/08/2.07.jpg" alt="">
This is the measly rate paid by the average at-call savings account after rates fell by 25 bps across the board in May. 
<img src="/images/2016/06/08/13.jpg" alt="">
Savers may find relief by stashing their cash in a term deposit account with 13 providers raising their rates by an average of 28 bps across various terms last month. 
<img src="/images/2016/06/08/17.44.jpg" alt="">
The average credit card rate is virtually unchanged at 17.44 percent despite the record low cash rate. In fact, Mozo found the average credit card rate is now 10 times higher than official rates.
For more information, <a href="https://mozo.com.au" target="_blank">click here</a>.
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RBA holds on rates: Mozo’s five-need-to-know numbers

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RBA Governor Glenn Stevens' June 2016 statement
At its meeting today, the Board decided to leave the cash rate unchanged at 1.75 per cent.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. China's growth rate moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
In financial markets, conditions have generally been calmer for the past several months following the period of volatility early in the year. Attention is now turning to some particular event risks. Funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with continued expansion of employment in the near term.
Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate overall is helping the traded sector. Over the past year, growth in credit to businesses has picked up, even as that to households has moderated a little. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have begun to rise again recently. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.
Taking account of the available information, and having eased monetary policy at its May meeting, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time.
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Apartment supply is an issue: RBA Governor Glenn Stevens' June 2016 statement

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The RBA cash rate decision came out at 2.30 today with the decision to hold rates at 1.75 percent.
Monetary policy decisions are expressed in terms of a target for the cash rate, <a href="https://www.rba.gov.au/statistics/cash-rate/" target="_blank">which is the overnight money market interest rate</a>.
CoreLogic head of research Tim Lawless said the RBA has left the cash rate on hold today at the historically low setting of 1.75 percent and mortgage rates are likely to remain at their lowest levels since 1968.
He said in making their decision the RBA is facing conflicting economic trends.  
"On one hand we have an economy that is growing at just over 3 percent per annum, low unemployment and a re-accelerating housing market," he said.
"On the other hand the RBA is confronted with a core inflation reading which is at a record low as well as the lowest wages growth on record.  While the decision to hold rates was widely expected, the prospect of a further rate cut later this year is still well and truly on the cards.  
"If the June quarter inflation data, which is out a week before the RBA’s August board meeting, provides another weak reading, the chances of a rate cut in August are high.  The turnaround in the pace of capital gains across the housing sector is likely to be a concern for the RBA. 
"CoreLogic reported a 1.6 percent rise in capital city home values last week, following a 1.7 percent rise in April. The stronger housing market conditions have been enough to reinflate the trend rate of growth which is something the RBA and the banking sector regulator are likely to be keeping a close eye on.  
"Strong housing market conditions probably wouldn’t be enough to block a further rate cut, however, if the renewed growth trend continues, there is the potential for a further regulatory response that could cool housing market demand while at the same time allowing monetary policy to stimulate the broader economy."
Laing+Simmons managing director Leanne Pilkington said interest rates need not drop any further.
"Most lenders passed on last month’s cut either in full or part. Strictly from a finance perspective, there’s never been a better time to obtain an affordable loan,” she said.
“But a low interest rate is just one piece of the affordability puzzle, and there are many other influences conspiring to keep a property purchase out of the realm of many young people.
“For first home buyers, the situation leading into the election remains unchanged, despite last month’s rate cut. Accumulating a deposit against the background of a less certain economic environment, a changing employment picture and the high cost of renting is more difficult than ever." 
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RBA holds at 1.75 percent at June 2016 meeting

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GUEST OBSERVER
After the Reserve Bank of Australia’s cut the cash rate to 1.75 percent in May due to unusually weak inflation, recent figures show GDP growth, in the March quarter, rose to 1.1 percent, higher than expected.
The unemployment rate remained steady at 5.7 percent, while the global economy continues to paint a motley picture. Relative to last month, the CAMA RBA Shadow Board’s policy preferences have become more hawkish; however, this reflects last month’s divergence between its preferred interest rate setting and the RBA’s actual decision. The Shadow Board attaches a 52 percent probability to a rate hold being the appropriate policy setting. The confidence attached to a required rate cut equals 11 percent, while the confidence in a required rate rise equals 37 percent.
Australia’s unemployment rate stood firm at 5.7 percent. The participation rate remained virtually steady at 64.8 percent. Nominal wage growth at 2.1 percent year-on-year is the lowest it has been in 18 years, reflecting slackness in the labour market and a replacement of high-wage jobs in the mining industry with lower paying jobs elsewhere in the economy.
Last month’s rate cut pushed the Aussie dollar four cents lower, relative to the US dollar; it is trading between 72 US¢ and 73 US¢. For the same reason yields on Australian 10-year government bonds have fallen to under 2.3 percent.
Domestic share prices rose to new highs. The S&amp;P/ASX200 last week closed above 5400, the highest since August 2015. Global stocks markets have been similarly buoyant.
Australian GDP growth was unexpectedly high in the first quarter of 2016, clocking in at 1.1 percent, compared to 0.7 percent in the previous quarter. At this rate, annual GDP growth for the 201⅚ fiscal year will equal around a healthy 3 percent.
The US economy is continuing to grow near potential but the most recent unemployment figures disappointed. Other countries are faring less well. Russia is hoping its economy will start growing again later this year while Brazil just announced its economy contracted by 5.4%, year-on-year, in the first quarter. China’s growth rate is expected to be between 6 percent and 7 percent; recent announcements by the Chinese government of large-scale infrastructure projects are no doubt meant to breathe new life into the Chinese economy. Europe’s economies are expanding modestly, Japan is standing still and there remains uncertainty surrounding the resilience and strength of the world’s developing economies, especially those carrying large debt burdens.
Consumer confidence, as measured by the Westpac/Melbourne Institute Consumer Sentiment Index, leapt from 95 in April 2016 to 103 in May. Business confidence, according to the NAB business survey, fell slightly from 6 to 5 in April. The AIG manufacturing index fell slightly, but the services index, also a leading economic indicator, rose.
The Shadow Board’s confidence measures have shifted considerably. It attaches a 52 percent probability (63 percent last month) that “no change” is the appropriate policy, an 11 percent probability (29 percent last month) that a rate cut is appropriate and a 37 percent probability (8 percent in the previous month) that a rate rise, to 2.00 percent or higher, is appropriate.
It must be borne in mind, however, that the Shadow Board, in contrast to the RBA which lowered the cash rate last month, preferred to keep the cash rate on hold in May. Hence, the current probabilities overall reflect a more hawkish stance relative to the RBA.
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 1.75 percent equals 24 percent (29 percent in May). The estimated need for an interest rate decrease has fallen from 29 percent to 16 percent, while the need for a rate increase has risen 18 percentage points to 60 percent. A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 14 percent (19 percent in May), while the confidence in a required cash rate decrease equals 16 percent (19 percent in May) and in a required cash rate increase 70 percent (61 percent in May).
<a href="/images/2016/06/07/Screen%20Shot%202016-06-07%20at%2010.28.31%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/06/07/Screen%20Shot%202016-06-07%20at%2010.28.31%20AM.png" alt="">
For more information, <a href="https://cama.crawford.anu.edu.au/rba-shadow-board" target="_blank">click here</a>.
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The nadir of the interest rate cycle is probably reached: RBA Shadow Board

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GUEST OBSERVER
Having cut its cash rate by 25bp last month, in response to the very low Q1 CPI print, we see the RBA on hold this month.
Although inflation is below the 2-3 percent target, strong local growth is expected to gradually lift inflation back to target over time 
Our central case is for a further 25bp cut in August; however, the RBA will have a keen eye on the Fed, as a further large fall in the AUD could obviate the need for another cut 
The Fed and the AUD 
The key local development over the past month has been the upside surprise to Q1 GDP, which grew by a stronger-than-expected 3.1 percent y-o-y. However, most of the surprise was to exports, with growth in domestic demand remaining only modest and local income growth quite weak. 
In short, although the RBA could consider revising up its growth forecasts as a result of the Q1 GDP print, the composition of the growth means that the outlook for low inflation is likely to remain unchanged. 
However, we do think that the stronger GDP combined with the signs of continued modest improvement in the labour market are likely to keep the RBA from considering a cut in June or July. Indeed, given that the driving factor for the 3 May 25bp cut was the surprisingly weak Q1 CPI print, and that the meeting’s minutes revealed that the RBA board was hesitant about that cut, we think the RBA will need to see the Q2 CPI before it would consider a further cut. 
Our central case is for the RBA to cut its cash rate by a further 25bp to 1.50 percent in August, following the Q2 CPI print (we expect the trimmed mean to be around 0.4-0.5% q-o-q), and for the central bank to hold steady at 1.50% over subsequent quarters.
 However, as always, there are risks to this forecast. A key factor in play at the moment is the Federal Reserve. An improving US economy and more hawkish commentary from Fed officials mean that the market is now pricing in a 55 percent likelihood of a Fed hike by July (HSBC’s economists expect a 25bp Fed hike in September). 
A key result of the more hawkish Fed has been a depreciation of the AUD, which has fallen from USD0.78 in mid-April to around USD0.72 recently. At same time, commodity prices have held up, particularly supported by higher iron ore prices. 
If the Fed does lift its policy rate in coming months and this pushed the AUD lower, it could discourage the RBA from cutting. In addition, local housing prices are, once again, rising, which could make the RBA more reluctant to cut further. We see the RBA on hold in June and July, and have a cut pencilled in for August, after the Q2 CPI. However, the risk to this view is that the RBA delivers less, not more, in our view.
<a href="/images/2016/06/03/Screen%20Shot%202016-06-03%20at%203.39.47%20PM.png" target="_blank">Click to enlarge</a>
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The June meeting is likely to be uneventful
The key development since the RBA’s last meeting has been the upside surprise to the Q1 GDP numbers. GDP rose by a stronger-than-expected 1.1 percent in the first quarter and was 3.1 percent higher y-o-y (Chart 1). However, the upside surprise mainly came from exports, while domestic demand and local income growth remained too weak to lift inflation. The consumption deflator – which is the measure of consumer price inflation in the GDP numbers – was particularly weak, falling -0.1 percent q-o-q and up only 1.2 percent y-o-y. This helps to explain why underlying inflation fell to a more than two-decade low in the first quarter, despite the strong GDP growth.
The range of other domestic indicators has generally shown solid growth. Building approvals were stronger than expected, prolonging the housing construction boom, and the retail numbers for April were solid (3.6 percent y-o-y). Jobs growth was as expected in April (2.1 percent y-o-y) and the unemployment rate was steady at 5.7 percent. Our labour market index, which aggregates a collection of timely jobs market indicators, suggests continued modest improvement in labour market conditions (Chart 2).
In sum, although inflation is too low, and the case could be made for a further cut, an immediate cut seems unlikely. Keep in mind that the RBA has a ‘flexible’ inflation-targeting regime, which allows the CPI to be outside the band for periods of time, without requiring an immediate response. The RBA’s own forecasts have underlying inflation remaining below the bottom edge of the target band until mid-2018 (Chart 3). The key question the RBA will now be asking, month-to-month, is whether developments over the past month make it more or less likely that inflation heads back to target over that time horizon.
In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum. HSBC is not taking a political position and this document and the information contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in the UK Referendum.
 
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What the Fed could mean for the RBA
A key development that could affect the local inflation outlook and the RBA’s willingness to cut further is the recent shift in policy rate expectations of the Federal Reserve. The main channel through which this impacts the RBA is the effect it could have on the AUD.
The AUD has already fallen from a peak of USD0.78 in mid-April to around USD0.72 recently (Chart 4). At same time, commodity prices have held up, particularly supported by higher iron ore prices, which has driven the commodity price index to an seven-month high in AUD terms. The fall in the AUD should help to support growth, particularly as growth is being more driven by services exports, which are exchange-rate sensitive. The lower AUD should also help to lift inflation.
Watching what the Federal Reserve does in coming months has a bearing on the RBA’s outlook largely through its likely effect on the AUD.
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<a href="https://www.about.hsbc.com.au/hsbc-in-australia/management-team" target="_blank">PAUL BLOXHAM</a> IS CHIEF ECONOMIST (AUSTRALIA AND NEW ZEALAND) FOR HSBC. 
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RBA on hold, with a keen eye on the Fed: HSBC's Paul Bloxham

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Last month’s surprise cash rate cut is unlikely to be the last for 2016, according to finder.com.au, one of Australia’s biggest comparison websites. 
While all 31 experts (100 percent) in the <a href="https://finder.us9.list-manage.com/track/click?u=cc5e9bce699fa1d71a67cf499&amp;id=7dc80c0687&amp;e=58cd8ffd03" target="_blank">finder.com.au Reserve Bank Survey</a> are forecasting the cash rate will hold at the new historic low of 1.75 percent at the Reserve Bank board meeting tomorrow (7 June 2016), 68 percent (21/31) predict there’s a further cut on the way this year 
Most of these experts (14/31 or 45 percent) are tipping August as the month most likely for a rate cut. Three experts (10 percent) are forecasting September for a rate drop, while four experts (13 percent) think we’ll have to wait until November.  
As for how low the cash rate may drop this cycle, the majority (60 percent) of experts are forecasting it will fall to 1.50 percent, while 12 percent believe there’s scope for the cash rate to cut to even lower than this. 
Bessie Hassan, Money Expert at <a href="https://finder.us9.list-manage2.com/track/click?u=cc5e9bce699fa1d71a67cf499&amp;id=8be71cac36&amp;e=58cd8ffd03" target="_blank">finder.com.au</a>, says it’s now more important than ever for first home buyers to do their research before entering the market.
“Despite an attractive low rate market, one-third (33 percent) of experts thought that the market pre-GFC was more suitable for first home buyers. Just 10 percent believed the current combination of economic factors in Australia (low interest rates and fluctuating house prices) makes this the best market for first home buyers since the GFC,” says Ms Hassan.
Reasons cited include deteriorating affordability and lack of government stimulus. 
“State governments have different levels of support for first home buyers. Check your state government website to ensure that you’re aware of any grants or concessions that are available to you.”
For example, under the New South Wales First Home - New Home scheme, eligible first home buyers are exempt from transfer duty on new homes valued up to $550,000, while those residing within Tasmania and the Northern Territory do not have any duty concessions available to them.
First home buyers also need to be careful when considering their home loan options, Ms Hassan says. 
“While the cash rate is at a historic low, don’t be enticed by a low advertised rate alone. Make sure you look at the comparison rate on offer, as this is a better reflection of the cost of the loan.  
“Also factor in the features and flexibility of the loan and think about your current and future lifestyle and how these may be impacted financially. For example, if you’re thinking of having children or if you don’t have job security, you may opt for a fixed rate loan for greater peace of mind.  
“There are some fantastic deals out there – for both variable and fixed loans – but you’ve got to make sure you do the groundwork to reap the benefits of a low rate environment.”
Keep in mind, however, that low rates won’t hang around forever, she says. “Two in five experts are predicting a recovery next year, saying a rate rise is in the pipeline beyond 2016.”  
When asked about recent warnings that Australian property market prices could rise by 10 percent by 2020, 35 percent of experts agreed with this prediction. Thirty percent of experts are forecasting a rise of 5 percent by 2020, while 25% predict no change or a drop in house prices between now and then. 
What our experts had to say in the June Reserve Bank Survey: 
Shane Oliver, AMP Capital: "While I expect the RBA to cut the cash rate again this year, not enough will have happened to bring on another move by the June meeting." 
Peter Munckton, Bank of Queensland: "We have had no new information to change RBA's view that 1.75% is the right rate."
Richard Robinson, BIS Shrapnel: "The last cut successfully engineered a fall in the dollar, which the RBA desired. Although inflation is low, deflation is unlikely (oil prices have already risen sharply since January), and the economic growth is sufficient to prevent a marked increase in the unemployment rate. Better to leave some rate cuts for later – when they might need them."
Chris Caton, BT Financial Group: "The Bank may cut again but it is not in a hurry."
Dr Andrew Wilson, Domain Group: "RBA to take a wait and see approach after last month’s cut with data remaining mixed. Inflation critical but bias remains solidly for another cut this year although a near-term rise in US rates may stay the RBA hand." 
Scott Morgan, Greater Bank: "The RBA will wait to see the impact of the most recent cuts. There is no recent economic data that would change the RBA's view." 
Mark Brimble, Griffith University: "While bias remains to easing, the RBA is likely to tread carefully and wait for the reaction to the previous month’s rate cut to emerge and further data in relation to confidence, inflation, lending and capital expenditure prior to easing again."
Mandeep Sodhi, HashChing: "RBA would want to wait till August 2016 to see the flow on effects from rate cut in May 2016. The July 2016 election results will also give some clear directions and would make sense to wait till August 2016. There are no compelling reasons for RBA to change the interest rate in immediate short term. This is a good time for existing homeowners to revisit the interest rate they are getting and negotiate a better rate from existing lender. Home owners do not need to wait for another rate cut in this competitive market where lenders including  big 4 banks are offering home loan interest rates below 4% p.a."
Jason Spencer, homely.com.au: "The Australian economy is looking stronger, global issues are dissipating and the Australian dollar is falling so rates should remain on hold on June 7." 
Shane Garrett, Housing Industry Association: "The RBA will take time to assess the consequences of its May rate cut as well as possible developments in inflation before moving on rates again." 
Paul Bloxham, HSBC: "They just cut last month and, in our view, will want to see the Q2 CPI print before considering a further move."
Michael Witts, ING Bank: "Given low inflation was the driver behind the May decision we would suggest that the RBA will look for further data on this front."
James Boyle, Liberty: "It’s hard to ignore the downgraded inflation forecasts the Board issued earlier in the month, although I still don’t see another cut coming until at least August. This is despite jobs growth and unemployment remaining modest, but steady, and wage growth continuing to slow. The Board will no doubt be monitoring the impacts of the last rate cut on the country’s stronger property markets. Auction clearance rates in Sydney performed strongly on back-to-back weekends in May, while Melbourne is seeing listing numbers similar to the same time as last year. First home buyers and investors are returning to the market with the promise of lower interest rates – and this is improving the outlook for the sector. At the same time Mr Stevens has expressed that there is a bit of flexibility in the RBA’s inflation target, so we’re likely to see the cash rate hold for a few months, despite inflation being low, to see if other improvements come about. Economic recovery abroad in the US and Europe is tipped to be slow and steady over the coming years and I don’t foresee Australia being any different.” 
Grant Harrod, LJ Hooker: "The RBA will now monitor the effect last month's rate cut has on the economy. Lending institutions continue to de-risk the housing market by raising rates to investors, and limiting borrowing by non-resident buyers. This is resulting in price growth moderating and also allows the RBA to cut rates further, later in the year, as needed."
Stephen Koukoulas, Market Economics: "Economy doing reasonably well – no need for further monetary policy stimulus."
John Caelli , ME: "Having just cut, the RBA will likely hold until August to assess CPI figures before cutting again to confirm their initial assessment. The RBA continue to target inflation within a 2 to 3 percent band over the longer term." 
Mark Crosby, Melbourne Business School: "Having just cut, and with the US likely to raise there is no compelling reason to cut despite low inflation numbers."
Effie Zahos, Money Magazine: "The next inflation report isn't due until July 27 so it could be a case of hold steady until August." 
Emily Dabbs, Moody's Analytics: "The central bank will likely wait to see if the May rate cut has bolstered domestic demand and put upward pressure on inflation. Further rate cuts are likely down the track." 
Jessica Darnbrough, Mortgage Choice: "There are a couple of reasons why the Reserve Bank may choose to leave the official cash rate on hold this month. In the first instance, unemployment remains low, sitting at 5.7%. Secondly, consumer sentiment has improved significantly over the last month - both of which are positive signs for the broader economy.”
Christopher Schade, MyState Bank: "There's no urgent need to deliver another cut to the Australian economy with the Australian dollar weaker, the economy going OK and May's cut requiring some time to work through the economy. It is more likely the RBA will take some time to see how the Australian economy and global conditions develop over the coming months before making any further changes to the cash rate."
Saul Eslake, Independent Economist and Financial Commentator: "They have responded to the lower-than-expected CPI, the currency has since fallen quite a lot, their other forecasts for economic growth and unemployment haven't changed, no need to lower rates again."
Alan Oster, NAB: "Too early to judge inflation and non mining outlook."
Jonathan Chancellor, Property Observer: "The last move is enough." 
Matthew Peter, QIC: "Having cut in May, the RBA will await the next read of inflation in July before deciding whether to cut another 25 basis points." 
Noel Whittaker, QUT: "[The RBA are] awaiting the outcome of last cut" 
Angus Raine, Raine &amp; Horne: "The RBA made a big call in dropping interest rates last month, and with the Federal Election on the horizon, I don't expect any movement this month." 
Nathan McMullen, RAMS: "Further assessment of impact of recent monetary easing required."
Janu Chan, St.George Bank: "The RBA will choose to wait a while after the decision to cut rates at its last meeting. "
Scott Pape, The Barefoot Investor: "The cuts are coming… just not this month."
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